Friday, August 13, 2021

SpiceJet reports Q1 net loss at Rs 729 cr as COVID-19 wave impacts operations

SpiceJet announced on Friday that it has posted a net loss of Rs 729 crore during the April-June quarter of the current fiscal year, compared to a net loss of Rs 593 crore in the same quarter of the previous fiscal.

The airline's flight operations were severely impacted during the quarter under review due to the second wave of the COVID-19 pandemic. The firm's total revenue for the June-end quarter stood at Rs 1,266 crore against Rs 705 crore during the same quarter of the previous year. Operating expenses were Rs 1,995 crore in Q1 of FY22 as against Rs 1,298 crore during the April-June quarter of FY21.

On an EBITDA basis, the loss was Rs 244 crore for the June-end quarter compared to a loss of Rs 5 crore for the same quarter last fiscal. SpiceXpress' revenue jumped 285 per cent to Rs 473 crore for the reported quarter as compared to Rs 166 crore in the same quarter last year. SpiceXpress is the logistics arm of SpiceJet.

Ajay Singh, Chairman and Managing Director, SpiceJet, said, "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."

"Our logistics arm continued with its strong growth story reporting yet another profitable quarter," he added.

Singh said SpiceJet is in the process of hiving off SpiceXpress, which is expected to unlock significant value for the airlines and its shareholders. He added this will allow SpiceXpress to raise capital to fuel its rapid growth.

13/08/21 BusinessToday.In

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