SpiceJet reported its quarterly loss of 838 crores of Indian Rupees. This came as a result of the record high fuel price, limited capacity, and a depreciating Rupee value.
The price for a barrel of jet fuel is reported to have increased by nearly two times, from January 2022 to mid summer.
This loss is reported as the highest-ever quarterly loss by the authorities of Company.
According to a press release by SpiceJet, 260 crores, out of the total 838 crores of loss recorded, came as a result of foreign exchange currency loss. Also, the number of flights has been increased to 30 percent in order to overcome the huge loss suffered.
Spice Jet, which has its headquarters in Gurgaon, Haryana, is one of the leading airlines in India. It operates 630 flights every day to 64 destinations which includes both domestic and international flights. In May 2005, SpiceJet operated its very first flight.
Founded in the year 2004, SpiceJet started its operation the very next year, with operating bases in Delhi and Hyderabad.
Recently, direct flight from Pune to Bangkok was introduced by Spice Jet, and the ceremony was inaugurated by the civil aviation minister, Jyotiraditya Scindia.
Reasons for aviation fuel, being so costly
Various environmental factors all over the World, such as the global economy, resource shortages, wars, and fluctuating exchange rates, together contribute towards being the reasons for the price rise of aviation fuel.
Also, the tension in Middle Eastern countries and increasing fuel demands in China collectively lead to rising fuel prices.
Raising the prices of petrol, diesel and cooking gas, is a sensitive issue, as the day-to-day lives of common people get affected as a result of this. Therefore, there is a disproportionate rise in the cost of aviation fuel.
Also, due to the number of passengers traveling during the pandemic was much low and the rule of fifty percent occupancy, added to the loss suffered by SpiceJet.
Shares of SpiceJet have reportedly come down to 43.7 percent, since last year.