SpiceJet net loss widens to ₹789 crore in June quarter, CFO Sanjeev Taneja resigns
SpiceJet recorded a net loss of ₹789 crore for the first quarter ending 30 June, as the carrier's business was severely impacted by record high fuel prices and a depreciating Rupee
PremiumLow-cost carrier SpiceJet on Wednesday said the company's Chief Financial Officer Sanjeev Taneja had resigned amid widening losses and an increase in in-flight incidents. The airline recorded a net loss of ₹789 crore for the first quarter ending 30 June, as compared with a loss of ₹729 crore in the year-ago period, as the carrier's business was severely impacted by record high fuel prices and a depreciating Rupee.
Total revenue for the quarter under review came at ₹2,478 crore, as against ₹1,266 crore in the same quarter of the previous year, SpiceJet said in a regulatory filing.
For the same comparative period, operating expenses stood at ₹3,267 crore as against ₹1,995 crore. On an EBITDA basis, loss was at ₹379 crore for the reported quarter as against a loss of ₹244 crore for the quarter ended June FY2022.
SpiceJet had also reported a loss ₹458 crore for the quarter ended March, which the company said was delayed due to a cyber security attack. The airline had reported a loss of ₹235.3 crore for the quarter ending 31 March, 2021.
'Business was severely impacted during Q4FY2022'
“Business was severely impacted by the third wave of Covid-19 and high fuel prices during Q4FY2022," the airline said.
Ajay Singh, Chairman and Managing Director, SpiceJet, said, “The industry has been witness to one of the most severe operating environment in the recent past which impacted the progress and recovery made in Q3FY2022. Record high ATF prices and depreciating Rupee were the major contributors."
“Despite the complex operating environment and highest ever input costs, SpiceJet has been able to sustain its operations with the confidence shown by our partners and passengers," Singh said.
He added, Last year was a period of restructuring and settlements and we successfully completed and implemented settlements with most of our major partners including manufacturers and lessors setting the stage for our seamless growth and expansion."
"…our focus for the next year would be to induct more fuel efficient Boeing 737-8 MAX aircraft and concentrate on our regional and international routes," Singh said.
The carrier said it would raise funds up to $200 million. “We are optimistic about our future and our continued recovery and in order to achieve our future plans the Board has mandated fresh capital issuance and the Company will be shortly engaging with investment bankers for a potential raise of up to US $200 million."
SpiceJet delays salaries for second straight month
Meanwhile, SpiceJet employees today alleged delay in the disbursal of salaries for the second straight month, with the budget airline saying the payments were being made in a "graded format".
There was a delay in disbursal of salary for staff, including flight crew, for the month of July and many are yet to get the Form 16 for the financial year 2021-22 as well, SpiceJet employees claimed.
"The salary disbursal was timely for June. Also, the salaries are yet to match the pre-COVID-19 levels. The salaries being disbursed to captains and first officers are not even 50 per cent of what they used to be before the pandemic outbreak in March 2020," a staff told news agency PTI.
However, SpiceJet claimed it has started salary disbursal in a "graded format".
"We have started crediting salaries from today. Like the previous month, salary will be credited in a graded format," the airline said in a statement.
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