Sunday, July 24, 2022

Rumour mills agog as Spicejet sits over March-end results

New Delhi: Budget carrier SpiceJet with a fleet size of 95 planes reported a net profit of Rs 23.28 crore in the quarter ended December in FY2022.

But industry sources said that the Covid pandemic hit the aviation sector badly and SpiceJet too is not untouched by the financial stress.

While the airline has not come out with its Q4 FY2022 results, some industry sources claimed that when announced, the results will truly disclose its financial condition.

SpiceJet planes recorded passenger load factor or occupancy of 84.1 per cent in June when it had a market share of 9.5 per cent.

While the airline has claimed that the March results are delayed due to a ransomware attack on its system, industry sources said the airline is under financial stress.

Industry sources and experts said that fleet deployment and oversight is very crucial in the aviation sector. During the Covid pandemic, most of the aircraft were lying idle and many airlines resorted to cost-cutting and retrenchment of employees to cope with the financial crisis.

Now, there is a sudden surge in demand which the airlines are finding difficult to manage, leading to a rising number of technical malfunctions.

Jitender Bhargava, former Executive Director of Air India, said that given the current situation, it is very difficult to reach the breakeven point for many airlines in the country.

23/07/22 IANS/Siasat

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