New Delhi: Low-cost carrier SpiceJet on Friday reported Rs 561.7 crore net loss in the second quarter ending September 30, 2021 as against Rs 112.5 crore in the same quarter of FY21.
The company’s total revenue from operations during this period stood at Rs 1,342.5 crore, up 27% compared to Rs 1,054.9 crore in the same quarter last year as travel demand gradually picked pace with easing of movement restrictions.
The company’s business operations continued to be significantly impacted due to the second wave of Covid-19 which continued to impact travel demand negatively during the quarter ended September 2021.
Ajay Singh, Chairman and Managing Director, SpiceJet said in a statement that the company had made excellent progress in recovery and expected the trend to continue forward in the coming quarters.
“With the nationwide vaccination drive growing at an unprecedented pace across geographies, there is a significant jump in travel demand and we are very excited about the demand recovery. 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,” he said.
In the reported quarter, SpiceJet received shareholders’ approval to transfer its cargo and logistics services business to its subsidiary, SpiceXpress and Logistics Private Ltd as a going concern, on slump sale basis valued at Rs 2,555.77 crore. The transfer of the logistics business once consummated will result in a one-time gain for SpiceJet wiping out a substantial portion of the company’s negative net worth.
“SpiceJet has 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. The airline expects to start flying its MAX aircraft soon once all regulatory approvals have been received,” the airline said in the statement.
