SpiceJet Q1 results: Reports net loss of Rs 593 crore; cargo revenue surges

NEW DELHI: SpiceJet on Tuesday posted a net loss of Rs 593.40 crore for the quarter ended June compared to a net profit of Rs 261.67 crore in the same period last year.
Revenue from operations plunged 83.46 per cent YoY to Rs 483.34 crore during the quarter under review. The operations of airline companies were heavily affected during the quarter due to government orders.

“This is the worst‐ever crisis to hit the aviation sector but I am pleased that SpiceJet continues to innovate and outperform the industry. Flight operations were suspended for most part of the quarter and the partial resumption of flights initially and the weak demand thereafter was a reminder of the significant problems that this pandemic has resulted in,” said Ajay Singh, Chairman and Managing Director, SpiceJet.

The company said its EBIDTAR profit stood at Rs 13.5 crore (against profit of Rs 812.1 crore last year) while the operating loss was Rs 568.3 crore. Revenue from cargo increased by 144 per cent while it registered industry’s highest domestic load factor of 66.4 per cent, the company said. But Capacity (in terms of seat kilometre) contracted by 90 per cent.

“I am confident that as more and more states ease travel restrictions and business activity gets back to normal there will be a significant improvement in the operating environment for airlines and we are witnessing some early encouraging signs towards recovery. I expect our cargo business to continue to expand in the coming quarters,” Singh said.

The company said SpiceJet operated over 800 charter and Vande Bharat flights to help repatriate more than 1,20,000 stranded Indian citizens. SpiceJet established itself as the country’s largest cargo operator and operated more than 7000 flights and transported around 50,000 tonnes of cargo since March 25, 2020, the firm said.

Currently, the company is operating 47% of pre‐covid schedule post restart operations along with a fleet of 13 cargo aircraft including two wide‐body planes.

It launched long‐haul wide‐body cargo operations and its cargo network spans over 63 domestic and 44 international destinations, the company claimed.

Credit: Stocks-Markets-Economic Times

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