SpiceJet Q2 loss widens to 463 crore

New Delhi: SpiceJet on Wednesday reported widening of net loss to Rs 462.58 crore in the September quarter as higher costs related to grounding of Boeing 737 MAX planes and changes in accounting norms bogged down the no-frills carrier.

With 13 MAX aircraft on the ground, the airline has initiated the process of seeking reimbursements and claims from Boeing and expressed hope about a 'favourable outcome'. 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". Indian Accounting Standard 116 or Ind AS-116 has come into force from April 1. It pertains to principles for recognition, presentation and disclosure of leases. Airlines mostly opt for sale and lease back of planes.

It had a net loss of Rs 389.37 crore in 2018 September quarter. However, the airline's total income jumped to Rs 3,073.50 crore in the second quarter of the current financial year from Rs 1,902.08 crore in the same period a year ago. Operating revenue rose to Rs 2,845.3 crore in the second quarter of the current fiscal from Rs 1,874.8 crore in the same period a year ago.