SpiceJet loss mounts to Rs 729 cr in Q1 plans to hive off cargo arm to raise capital

New Delhi, Aug 13 (Bureau) Hit hard by the second wave of pandemic, low-cost carrier SpiceJet has reported a net loss of Rs 729 crore in the quarter ending June, 2021 as against a net loss of Rs 593 crore in the same quarter of the previous year. The company’s total revenue during April-June period of FY22 stood at Rs 1,266 crore as against Rs 705 crore in the same quarter of the previous year. “For the same comparative period, operating expenses were Rs 1,995 crore as against Rs 1,298 crore. On an EBITDA basis, loss was Rs 244 crore for the reported quarter as against loss of Rs 5 crore for the quarter ended June FY2021,”the airline said in a statement.

The airline Chairman Ajay Singh said that 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,” he said in a statement. While the Gurgaon-based company’s passenger business bled profusely, its cargo arm SpiceXpress earned Rs 30 crore profit on a revenue of Rs 473 crore in the first quarter riding high on the demand for transporting vaccines and other air cargo. It carried more than 43,000 tonnes of cargo and transported more than 33 million doses of Covid-19 vaccine during this period. SpiceXpress’s revenue increased by a whopping 285% to Rs 473 crore for the reported quarter as compared to Rs 166 crore in the same quarter last year.

“We are in the process of hiving off our logistics platform, SpiceXpress, which will unlock significant value for SpiceJet and its shareholders. This will also allow SpiceXpress to raise capital to fuel its rapid growth,” the airline Chairman said. The company said it 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,” the airline said.