New Delhi, May 17: Kalanithi Maran-led SpiceJet Ltd, which triggered price wars to fill up vacant seats, today suffered its biggest ever loss of Rs 1,003.24 crore for fiscal ended March 31 against losses of Rs 191.07 crore a year back.
The airline, however, expects the economic environment to improve and demand to grow in 2014-15.
“SpiceJet is well into the process of executing a re-structuring and transformation plan to position it well as market conditions improve and to take on the challenge of new players that are expected to enter the market,” the carrier said.
In the last few months, SpiceJet sparked a series of fare wars to fill seats and generate demand. It recently announced a “voucher programme” to compensate passengers if the airline did not fly on time.
“The sharp depreciation of the rupee during the quarter ended September 30, 2013 was unprecedented. Given the fact that over 75 per cent of any Indian airline’s cost is influenced by the dollar, the effects of the exchange rates on a broad spectrum of cost heads were crippling,” the airline said in a statement.
The airline’s net loss widened to Rs 321.51 crore for the quarter ended March from Rs 185.71 crore in the year-ago period because of the depreciation in the local currency, economic slowdown and softening of demand.