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Spicejet records net loss of Rs 600 cr in June quarter

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The low-cost air carrier reported a consolidated net loss of Rs 600.52 crore in Q1 June 2020 compared with net profit of Rs 262.89 crore in Q1 June 2019.

Net sales during the quarter slumped 83.2% year-on-year (YoY) to Rs 489.60 crore, as flight operations remained suspended for most part of the quarter following the nationwide lockdown.

On an EBITDA basis, loss was Rs 11 crore for the reported quarter as against profit of Rs 747.5 crore for the corresponding quarter last year.

On an EBITDAR basis, the profit was Rs 13.5 crore for the reported quarter as against profit of Rs 812.1 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," Spicejet said in a release.

Ajay Singh, chairman and managing director, SpiceJet, said, "This is the worst‐ever crisis to hit the aviation sector but I am pleased that SpiceJet continues to innovate and outperform the industry. Flight operations were suspended for most part of the quarter and the partial resumption of flights initially and the weak demand thereafter was a reminder of the significant problems that this pandemic has resulted in."

The chairman further said: "I am confident that as more and more States ease travel restrictions and business activity gets back to normal there will be a significant improvement in the operating environment for airlines and we are witnessing some early encouraging signs towards recovery. I expect our cargo business to continue to expand in the coming quarters. I am also encouraged by the progress made in the re‐entry of Boeing's Max aircraft into service."

"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 66.4% and the airline maintained its market share of above 16% despite the impact of Covid‐19 thus demonstrating robust operating parameters," he added.

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

The scrip shed 0.75% to Rs 53.20 on the BSE. It traded in the range of 52.65 and 54 so far during the day.

On a year-to-date (YTD) basis, the stock has declined 53.06% while the benchmark S&P BSE Sensex lost 5.25% during the same period.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Wed, September 16 2020. 09:25 IST
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