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SpiceJet reports a net loss of INR 729 crore on account of low market demand due to second wave of Covid-19

SpiceJet reports a net loss of INR 729 crore on account of low market demand due to second wave of Covid-19 1
SpiceJet,First Indian LCC to connect Mumbai with Riyadh and Dhaka and Delhi withDhaka and Jeddah

Gurugram, August 30th 2021: SpiceJet, India’s favourite airline and the leading logistics platform, reported a net loss of INR 729 crore in the first quarter of FY2022 as against a net loss of INR 593 crore in the same quarter of the previous year as flight operations were severely impacted due to Covid-19 second wave.

Total revenue was INR 1,266 crore for the reported quarter as against INR 705 crore in the same quarter of the previous year. For the same comparative period, operating expenses were INR 1,995 crore as against INR 1,298 crore. On an EBITDA basis, loss was INR 244 crore for the reported quarter as against loss of INR 5 crore for the quarter ended June FY2021.

The Company’s business operations were significantly hit due to the continued impact of Covid-19 which has had seriously impacted travel demand during the quarter ended June 2021.

SpiceXpress’s revenue increased by a whopping 285% to INR 473 crore for the reported quarter as compared to INR 166 crore in the same quarter last year.

Ajay Singh, Chairman and Managing Director, SpiceJet, said, “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. While no one can predict the future, with vaccination numbers picking up and demand for air travel increasing steadily, we hope the trend reverses soon. I am confident that SpiceJet will recover lost ground quickly as we are continuously ramping up our operations adding new stations and flights and are much better placed than this time last year. Our logistics arm continued with its strong growth story reporting yet another profitable quarter. We are making efforts to further strengthen the logistics business and are hopeful of driving a strong and profitable growth in the times to come.”

“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 Company 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.

In terms of operational parameters, SpiceJet had the best passenger load factor amongst all airlines in the country during the quarter. The average domestic load factor for the quarter was 69.5%.

SpiceJet launched 74 new flights during the quarter. The airline operated more than 300 charters transporting over 52,000 passengers across the globe. Since May 25, 2020, the airline has operated 1928 charters helping close to 3.37 lakh stranded passengers travel to their destinations. This also included over 25 wide-body charters to Europe & Canada.

SpiceJet has successfully vaccinated all its operating cabin crew with the first dose of the Covid-19 vaccine ensuring the safety of its employees and providing a safe travel experience to its customers.

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