Despite enormously high demand, the Indian low-cost airline Spicejet is deep in the red. The carrier recently released its financial results for the second quarter of the current fiscal year and reported a loss of US$103 million.

Management believes that the poor result can be attributed to the sharp increase in fuel costs and the depreciation of the Indian rupee against the US dollar, which is dominant in the aviation industry. However, numerous mistakes were also made within the company, which led to the company having to announce deep red numbers.

For comparison: In the same period last year, which was heavily influenced by corona restrictions, the minus was “only” 70 million US dollars. Despite the fact that in the second quarter of the current financial year sales increased by 46 percent to around 240 million euros, costs have really gotten out of hand.

However, Spiecejet is not an isolated case. Competitors such as Indigo and Air India are also suffering from the massive increase in fuel costs. In addition, the fact that almost all tickets are billed in Indian rupees, but many costs, especially for spare parts, have to be paid in US dollars, is not exactly helpful. Numerous Indian airlines are expected to end 2023 in the deep red. One or the other provider has already applied for state aid.

Despite enormously high demand, the Indian low-cost airline Spicejet is deep in the red. The carrier recently released its financial results for the second quarter of the current fiscal year and reported a loss of US$103 million.

Management believes that the poor result can be attributed to the sharp increase in fuel costs and the depreciation of the Indian rupee against the US dollar, which is dominant in the aviation industry. However, numerous mistakes were also made within the company, which led to the company having to announce deep red numbers.

For comparison: In the same period last year, which was heavily influenced by corona restrictions, the minus was “only” 70 million US dollars. Despite the fact that in the second quarter of the current financial year sales increased by 46 percent to around 240 million euros, costs have really gotten out of hand.

However, Spiecejet is not an isolated case. Competitors such as Indigo and Air India are also suffering from the massive increase in fuel costs. In addition, the fact that almost all tickets are billed in Indian rupees, but many costs, especially for spare parts, have to be paid in US dollars, is not exactly helpful. Numerous Indian airlines are expected to end 2023 in the deep red. One or the other provider has already applied for state aid.