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SpiceJet, India's largest airline, reports a quarterly loss due to the conflict between India and Pakistan.

SpiceJet, the Indian budget airline, posted its second consecutive quarterly loss as the demand for leisure travel on certain routes plummeted during the worst India/Pakistan conflict in decades.

The airline, which is in trouble, reported a loss between April and June of 2,35 billion rupees (about $26.6 million), compared with a profit of 1,5 billion rupees the year before.

After an attack on Kashmir in April, which New Delhi attributed to Islamabad and led to the closure of airports in north-west India, ties between India and Pakistan deteriorated. Pakistani airspace was closed for Indian carriers. Pakistan has denied involvement.

The quarterly revenue dropped by 35%, to 11,06 billion rupees.

SpiceJet said that a delay to return its aircraft to service also added to their woes.

In recent years, the carrier has signed numerous settlement agreements to resolve disputes with lessees and other parties but still struggles to increase capacity.

By the end of March, only 25 of its 61 jets were operational, less than half.

Akasa is one of India's newest airlines. Its limited size has allowed it to surpass SpiceJet and become the No.1 airline in India. SpiceJet is the No. 3 airline by market share. Akasa has a 5.5% market share compared to SpiceJet’s 2%.

SpiceJet said that its net worth increased to positive 4,46 billion rupees during the first quarter, from negative 23,98 billion rupees a year ago. $1 = 88.2591 Indian Rupees (Reporting and editing by Janane Vekatraman in Bengaluru, Nivedita Battacharjee).

(source: Reuters)