New Delhi: Leading domestic carrier, SpiceJet plans to focus on cargo business to boost its revenue going forward, said a company spokesperson. Also, the airline enjoys higher margins in cargo business compared to passenger business and moreover, the business visibility is higher and is more consistent.
In fact, higher revenue from the cargo business helped the airline to cut its losses in September 2020 quarter (Q2FY21). SpiceJet's revenue from cargo business increased by 39 per cent in Q2FY21 to Rs 328.54 crore compared to Q1FY20.
For the quarter ended September 30, the carrier reported a net loss of Rs 112.6 crore compared to Rs 462.6 crore in the corresponding quarter last year. Revenue for the period fell 62 per cent year on year to Rs 1,305 crore led mainly by a decline in passenger traffic revenue. But a surge in freight and logistics revenue helped offset the revenue decrease.
For the first six months ended September 30, 2020, SpiceJet saw its cargo revenue increase by 151 per cent to Rs 564.93 crore compared to the corresponding quarter last year.
Sources say that Spicejet management in its recent call with investors informed that the airline is looking to expand its cargo business extensively.
"Going forward, as our cargo business continues to expand, passenger demand further improves, travel restrictions are eased and the 737 MAX returns to service we hope the recovery will be much quicker and stronger," shared a source.
24/11/20 Karishma Asoodani/ETNowNews.com
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