SpiceJet reports Q1 net loss of Rs729cr on account of low market demand due to second wave of Covid‐19

On an EBITDA basis, the loss was Rs244cr for the reported quarter as against a loss of Rs5cr for the quarter ended June FY2021.

Aug 16, 2021 04:08 IST India Infoline News Service

SpiceJet, India’s favourite airline and the leading logistics platform, reported a net loss of Rs729cr in the first quarter of FY2022 as against a net loss of Rs593cr in the same quarter of the previous year as flight operations were severely impacted due to Covid‐19 second wave.

Total revenue was Rs1,266cr for the reported quarter as against Rs705cr in the same quarter of the previous year. For the same comparative period, operating expenses were Rs1,995cr as against Rs1,298cr.

On an EBITDA basis, the loss was Rs244cr for the reported quarter as against the loss of Rs5cr for the quarter ended June FY2021.

The Company’s business operations were significantly hit due to the continued impact of Covid‐19 which has had seriously impacted travel demand during the quarter ended June 2021.

The stock ended at Rs68.70 down by Rs3.2 or 4.45% from its previous closing of Rs71.90 on the BSE.

SpiceXpress’s revenue increased by a whopping 285% to Rs473cr for the reported quarter as compared to INR 166 crore in the same quarter last year.

Ajay Singh, Chairman and Managing Director, SpiceJet, said, “The last five quarters have been the most difficult phase ever for SpiceJet as aviation remained the worst‐hit sector during the second wave as well. Q1 was severely impacted by the second wave as passenger traffic almost disappeared. While no one can predict the future, with vaccination numbers picking up and demand for air travel increasing steadily, we hope the trend reverses soon. I am confident that SpiceJet will recover lost ground quickly as we are continuously ramping up our operations adding new stations and flights and are much better placed than this time last year. Our logistics arm continued with its strong growth story reporting yet another profitable quarter. We are making efforts to further strengthen the logistics business and are hopeful of driving a strong and profitable growth in the times to come.”

“We are in the process of hiving off our logistics platform, SpiceXpress, which will unlock significant value for SpiceJet and its shareholders. This will also allow SpiceXpress to raise capital to fuel its rapid growth,” Ajay Singh said.

Further, in terms of operational parameters, SpiceJet had the best passenger load factor amongst all airlines in the country during the quarter. The average domestic load factor for the quarter was 69.5%.

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