SpiceJet cuts down Q2 net loss to Rs 561.7 cr; revenue grows to Rs 1,539 cr

Homegrown airline SpiceJet has cut down its net loss to Rs 561.7 crore in Q2 FY22 from Rs 729 crore in Q1 FY22, despite Covid-19 continuing to affect demand. The company's EBIDTAR profit stood at Rs 50.6 crore, which is around 149 per cent growth on a quarter-on-quarter basis.

Total revenue was Rs 1,539 crore for the reported quarter as against Rs 1,266 crore in the last quarter. For the same comparative period, operating expenses were Rs 2,100 crore as against Rs 1,995 crore. On an EBITDA basis, the loss was Rs 106.5 crore for the reported quarter as against the loss of Rs 244 crore for the last quarter.

The company's business operations continued to be significantly impacted due to the second wave of Covid-19, which affected travel demand negatively during the quarter ended September 2021.

SpiceJet said its subsidiary SpiceXpress continued with its upward performance, reporting increased revenue of Rs 497 crore for the reported quarter as compared to Rs 473 crore in the last quarter, a jump of 5 per cent.

The reported quarter though witnessed a negative cash flow as the continuing rise in fuel costs could not be passed on to our customers due to committed long-term contracts. "These have now been re-negotiated and corrected to suit the present operating cost environment," the company said.

Ajay Singh, Chairman and Managing Director, SpiceJet, said, "We have made excellent progress in our recovery and I expect this trend to continue forward in the coming quarters. The settlement with key lessors, the return of the 737 MAX in the current quarter (Q3), transfer of the logistics business and some very significant announcements lined up soon are all positive tailwinds that should have a significant impact on our long term plans."

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 78%.

During Q2, SpiceJet received shareholders' approval to transfer its cargo and logistics services business to its subsidiary, SpiceXpress and Logistics Private Limited, as a going concern, on a slump sale basis valued at Rs 2,555.77 crore.

SpiceJet said it also finalised terms of settlements with Avolon and CDB Aviation, two of its major lessors of 737 MAX aircraft. These settlements and operations of 737 MAX aircraft will result in significant savings for the airline, it said. As per SpiceJet, the airline expects to start flying its MAX aircraft soon once all regulatory approvals have been received.

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