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SpiceJet slips 7% as Q2 net loss widens

In a release, SpiceJet said the net loss of Rs 462.58 crore in the latest September quarter was mainly on account of inflated costs with respect to MAX grounding and a seasonally weak quarter.

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Updated: Nov 14, 2019, 03.43 PM IST
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BCCL
Spicejet-1---BCCL
The airline's total income increased to Rs 3,073.50 crore in Q2FY20 over Rs 1,902.08 crore in Q2FY19.
NEW DELHI: Shares of SpiceJet declined nearly 7 per cent in trade on Thursday after the aviation player on Wednesday posted a net loss of Rs 462.58 crore in the September quarter on account of higher expenses related to grounding of Boeing 737 MAX planes and changes in accounting norms.

The company had reported a net loss of Rs 389.37 crore in the same period last year.

In a release, SpiceJet said the net loss of Rs 462.58 crore in the latest September quarter was mainly on account of inflated costs with respect to MAX grounding and a seasonally weak quarter.

The figure includes a “loss of Rs 180.3 crore on account of accounting standard Ind AS 116”, the firm said.

However, the airline's total income increased to Rs 3,073.50 crore in Q2FY20 over Rs 1,902.08 crore in Q2FY19. Operating revenue also rose to Rs 2,845.3 crore in the September quarter from Rs 1,874.8 crore in the same period a year ago.

"With the grounding of Boeing 737 MAX, the company continues to incur various costs and losses with respect to these aircraft. The company is in the process of determining the costs and losses (including opportunity losses) incurred by it and has initiated the process of seeking reimbursements and claims from the aircraft manufacturer," the release said.

The shares of the company closed 5.94 per cent lower at Rs 106.95 on BSE.
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