Friday, February 12, 2021

Hard to predict return to profits; cargo biz doing well, says SpiceJet CMD Ajay Singh

Even as SpiceJet’s losses have been narrowing, it is difficult to say how soon the airline will return to the black, Chairman and Managing Director Ajay Singh told CNBC-TV18.

Singh said his company was working towards reducing costs and increasing revenues, but many factors were beyond its control.

He said leisure travel was picking up, but not corporate travel. So while loads have been rising, yields continue to remain depressed, he said.

SpiceJet’s accumulated losses for this financial year so far stand at Rs 770 crore. Rising crude oil prices are making matters worse for airlines in general.

Singh said the government needed to review taxes on fuel, adding that India had the highest rate of tax on jet fuel globally, in excess of 35 percent.

Things are unlikely to improve much this quarter as the last quarter of the year is traditionally a weak one, Singh said.

He expects corporate travel to remain muted for the foreseeable future and wasn’t too hopeful of international travel either.

Singh said the cargo business has been a bright spot for the company throughout this tough phase, and that revenues in this segment have grown fourfold. He said the cargo business had immense potential and that SpiceJet was looking to expand its cargo operations in the coming quarters.

12/02/21 CNBC TV18

To Read the News in full at Source, Click the Headline


Post a Comment