Spicejet Q2 net loss narrows to Rs 106 cr

The low cost air carrier reported a consolidated net loss of Rs 105.61 crore in Q2 September 2020 as against net loss of Rs 461.22 crore in Q2 September 2019.

On a consolidated basis, net sales tumbled 62.6% to Rs 1,031.66 crore in Q2 September 2020 over Q2 September 2019. Pre-tax loss stood at Rs 105.61 crore in Q2 September 2020 as against a pre-tax loss of Rs 461.22 crore in Q2 September 2019. The Q2 result was declared after market hours yesterday, 11 November 2020.

On a standalone basis, the company reported net loss of Rs 112.59 crore in Q2 FY21 compared with net loss of Rs 462.58 crore in Q2 FY20. Net sales fell 63.17% to Rs 1,016.08 crore during the period under review due to COVID‐19. For the same comparative period, expenses were Rs 1,418 crore as against Rs 3,536 crore.

Revenue from cargo increased by 39% in Q2 FY21 over Q1 FY20. 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. The company's capacity (in terms of seat kilometre for passenger segment) contracted by 71% in Q2 September 2020 as compared to same quarter last year.

On an EBITDA basis, SpiceJet achieved a 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 stood at 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", the company highlighted.

Ajay Singh, the chairman and managing director (MD) of 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."

"Going forward, as our cargo business continues to expand, passenger demand further improves, travel restrictions are eased and the 737 MAX returns to service we hope 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."

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

Meanwhile, Sanjeev Taneja has joined SpiceJet as its new chief financial officer (CFO).

Shares of Spicejet rose 0.56% to Rs 54.30 on BSE.

SpiceJet is a domestic low-budget air carrier which provides scheduled flights between major cities in India.

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