SpiceJet Cuts Down Net Loss In Seasonally Weak Q2 To Rs.112.6 Cr

SpiceJet Crew - Aviatorsbuzz
A representational picture of SpiceJet cabin crew. Source: SpiceJet

SpiceJet on Wednesday said that it had significantly managed to cut down its net loss in the traditionally weak Q2 despite travel restrictions and COVID-19 affecting demand. On a standalone basis the net loss was reduced to Rs. 112.6 crore as against Rs. 462.6 crore in the same period last year.

Total income was Rs. 1,305 crore for the reported quarter as against Rs. 3,074 crore in the same quarter last year. For the same comparative period, expenses were Rs. 1,418 crore as against Rs. 3,536 crore.

On an EBITDA basis, SpiceJet achieved profit of Rs. 442 crore for the reported quarter as against Rs. 91 crore for the corresponding quarter last year. On an EBITDAR basis, the profit was Rs. 475 crore for the reported quarter as against profit of Rs. 154 crore for the same quarter last year.

The present operating environment on account of COVID-19 though does not reflect the true comparison of the current results with those of corresponding quarter last year.

Ajay Singh, Chairman and Managing Director, SpiceJet, said, “Despite COVID-19 continuing to pose serious operating challenges we have managed to significantly cut down our net loss in Q2 much like the previous quarter. The performance in Q2 is even more significant and special as this was a seasonally weak quarter when demand is at its lowest. Our Company and people have done some amazing work and I am proud of the determination and resilience they have shown.”

Mr. Singh said going forward, as the cargo business continues to expand, passenger demand further improves, travel restrictions are eased and the 737 MAX returns to service, SpiceJet hoped the recovery will be much quicker and stronger.

“Though COVID-19 cases continue to rise, I believe the worst is behind us. The pandemic gave us the unprecedented opportunity to further cut down on costs and re-structure our contracts and aircraft leases to align with current operating environment while at the same time operating the full schedule as was permitted. What we have managed to do in the last few months will have a significant long term impact,” he said.

In terms of operational parameters, SpiceJet had the best domestic passenger load factor of 73.1% amongst all airlines in the country during the quarter.

Key Business Updates

Sanjeev Taneja has joined SpiceJet as its new Chief Financial Officer. A seasoned professional with illustrious track record of leading the finance function and business, Mr. Taneja has worked across sectors and has contributed towards enhancing the efficiency and effectiveness of business. He brings over 27 years of business exposure and experience across reputed corporates such as Essar Ports, Mumbai International Airport, Damac Properties, Marg and other leading companies in the varied industries.

In line with its commitment to enhance regional connectivity, SpiceJet became the first Indian carrier to introduce dedicated cargo flights for North Eastern India. The airline aims to provide easy and quick access to farmers and businesses in the North East to transport their goods to the rest of the country while also facilitating easy transportation of essential cargo to the region.

Providing a major boost to tourism and continuing with its efforts to enhance regional connectivity, SpiceJet launched its seaplane service between Ahmedabad (Sabarmati riverfront) and the Statue of Unity in Kevadia, Gujarat. The airline also launched flights connecting Darbhanga with Delhi, Mumbai and Bengaluru and Nashik with Delhi, Bengaluru and Hyderabad.

Till date, since March 25, 2020 (when the lockdown began), SpiceJet has operated more than 9,930 cargo flights transporting 76,500 tonnes of cargo.

Besides keeping the country’s supply chain intact during the pandemic, SpiceJet in a statement said that it had been at the forefront in repatriating stranded Indian nationals. Since April, SpiceJet has operated over 1,100 charter and Vande Bharat flights to help repatriate 2 lakh people to and from the UAE, Saudi Arabia, Oman, Qatar, Kuwait, Kabul, South Korea, Philippines, Kyrgyzstan, Kazakhstan, Russia, Netherlands, Lebanon, Georgia, Hong Kong, Bangladesh, Maldives, Uzbekistan, Turkmenistan and Sri Lanka.

SpiceJet said that it had also operated 30 long-haul repatriation flights to and from London, Amsterdam, Toronto, Rome and Milan helping 8,000 Indian and foreign nationals get back to their homes.

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