Home >Companies >Company Results >SpiceJet Q1 results: Net loss widens to 729 crore as Covid pummels operations

No frills carrier SpiceJet reported a net loss of 729 crore for the quarter ended June 30, 2021, as against a loss of 593.4 crore in the corresponding quarter last year. The loss came despite substantial rise in revenue during the quarter as the airline said its business continued to face headwinds due to the Covid-19 restrictions.

Total income for the quarter under review increased 80 per cent to 1,265.85 crore as against 704.56 crore in the same quarter of the previous year. Total revenue from operations grew 112 per cent to 1,089.73 crore, from 514.69 crore.

On an EBITDA basis, loss grew manifold to 244 crore in June quarter, as against 5 crore for the quarter ended June last fiscal.

Operating expenses grew to 1,995 crore during the quarter as against 1,298 crore in the year-ago period.

The Gurugram-based airline claimed the s industry’s highest domestic load factor of 69.5 per cent during the quarter. The budget carrier claimed that its capacity in terms of seat kilometres increased by 229 per cent on annual basis.

The passenger segment saw revenue of 621 crore in Q1 FY2022 as against 349 crore in the same quarter last year. However, the segment saw EBITDA loss during the period grow even wider at 291 crore, compared to 81 crore in the same period last year. Segment loss stood at 759 crore during the June quarter as against loss of 642 crore in the same quarter last year.

Similar to earlier quarters during the pandemic, cargo hauling remained strong during the quarter under review too. SpiceXpress, the cargo service arm of SpiceJet, reported a rise of 285 per cent in revenue at 472.79 crore in the reported quarter as against 165.86 crore in the same quarter last year. Net profit for the segment was recorded at 30.29 crore, as opposed to 48.20 crore in the same period last year.

“The last five quarters have been the most difficult phase ever for SpiceJet as aviation remained the worst‐hit sector during the second wave as well. Q1 was severely impacted by the second wave as passenger traffic almost disappeared," said Ajay Singh, Chairman and Managing Director, SpiceJet.

Considering the potential of its cargo handling business, SpiceJet is in the process of hiving it of to unlock value for the airline and its shareholders, Singh said. This will also allow SpiceXpress to raise capital to fuel its rapid growth, he added.

Singh said that SpiceJet continues to incur various costs owing to the grounding and the inability of Boeing 737 Max aircraft to undertake revenue operations over the last two years now.

“SpiceJet continues to engage with Boeing to recover damages on account of expenses incurred by the SpiceJet due to the grounding of the 737 MAX and also engage with aircraft lessors of the grounded MAX aircraft to restructure the present leases," he added.

SpiceJet shares ended Friday's trade at 71.90 on BSE, up 0.45 points or 0.63 per cent.

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