Indian low-cost airline, SpiceJet has reported a third consecutive quarterly loss turning its net worth negative for the first time since the company was acquired by Sun Group.

The company's net worth stood at negative Rs 23.89 crore as on December 31, 2011 and this has seriously affected the company's ability to raise funds form the market. SpiceJet's auditors said that company's accumulated losses of Rs 1,077.81 crore has erased its net worth.

They also say that the erosion of the net worth might make it difficult for the company to continue as a going concern. The airline joins rival's Jet Airways and Kingfisher, who are already struggling to survive in the difficult market conditions.

Domestic airlines like Kingfisher, Jet Airways and Spicejet have reported losses due to rising costs of fuel and operations. Kingfisher has cancelled hundreds of flights, as it is unable to pay oil firms for fuel while Jet Airways has been advised to raise funds.

The Indian aviation sector is seeing a difficult quarter and the falling value of rupee has contributed to the worsening condition. Some domestic carriers have been asking the government to relax its terms to allow foreign firms to invest more freely in domes airlines. The opening of the sector to foreign airlines for investments will bring in much needed funds for cash strapped carriers like Jet, Kingfisher and others.