Boeing 737 MAX plane grounding takes toll on SpiceJet’s books; loss widens in Q2

Hit by the expenses in the form of grounding of Boeing 737 MAX planes and changes in accounting rules led to widening of SpiceJet’s loss to Rs 462.6 crore in the three months ended September. The airline recorded a loss of Rs 389.4 crore in the corresponding period of the last year. In the second quarter of the ongoing fiscal, the airline reported operating revenue of Rs 2,845.3 crore as against Rs 1,874.8 crore in the same period a year ago. With the grounding of Boeing 737 MAX, the company continues to incur various costs and losses with respect to these aircraft. The company is in the process of determining the costs and losses (including opportunity losses) incurred by it and has initiated the process of seeking reimbursements and claims from the aircraft manufacturer,” SpiceJet said in a statement. 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.