SpiceJet reports Q3 net loss of Rs 67 cr

On a consolidated basis, the low-cost air carrier reported a net loss of Rs 66.77 crore in Q3 FY21 compared with net profit of Rs 77.96 crore in Q3 FY20.

Revenue from operations slipped 53.73% to Rs 1691.64 crore in Q3 FY21 from Rs 3656.36 crore in Q3 FY20. The company reported a pre-tax loss of Rs 66.77 crore in Q3 FY21 compared with pre-tax profit of Rs 77.96 crore in Q3 FY20.

On a standalone basis, SpiceJet posted a net loss of Rs 57 crore in Q3 FY21 as against a net profit of Rs 73.22 crore in Q3 FY20. Revenue from operations tumbled 53.75% to Rs 1686.61 crore in Q3 FY21 over Q3 FY20.

On an EBITDAR basis, the profit was Rs 518.4 crore in Q3 FY21 as against a profit of Rs 475 crore in Q2 FY21. Despite intense competition and drop in yield, passenger revenue improved by 73% quarter-on-quarter through charters, aggressive network and sales strategies. Despite muted demand, loads sequentially increased from 75% to 78% as compared to Q2 FY21. It registered industry's highest domestic load factor of 76.8%.

Revenue from cargo increased by 36% quarter on quarter. The low-cost carrier said that it remained largest air cargo operator in India and carried 41,257 tonnes of cargo in Q3 December 2020.

Commenting on company's performance, Ajay Singh, chairman and MD of SpiceJet, said, "We have successfully managed to trim down our losses considerably with each passing quarter despite limited operations and muted demand. SpiceJet yet again recorded the industry's highest domestic load factor and has also demonstrated market leadership in passenger RASK amongst listed Indian peers. With our cargo business proving its true potential, the passenger business getting back on track significantly and a tight control on costs, we have managed to reduce our losses significantly in this quarter. There has been a remarkable recovery from where we were a few months back and with the world's biggest vaccination drive underway I see a strong revival across sectors. Our results are reflective of the massive exercise being undertaken by the company to align our cost base and we continue to explore and implement best practices to further bring operational efficiency and accomplish best cost base in the industry."

Shares of SpiceJet rose 1.15% to Rs 87.85. SpiceJet is India's low cost airline that operates a fleet of Boeing 737s, Bombardier Q‐400s & freighters and is the country's largest regional player operating 63 daily flights under UDAN or the Regional Connectivity Scheme.

Powered by Capital Market - Live News