SpiceJet narrows Q2 net loss, optimistic about future demand

NEW DELHI: Airline major SpiceJet on Wednesday reported a significantly narrower net loss in the traditionally weak Q2 despite travel restrictions.

On a standalone basis, the net loss reduced to Rs 112.6 crore from a loss of Rs 462.6 crore in the same period of the previous fiscal.

However, its total income had come down to Rs 1,305 crore for the reported quarter as against Rs 3,074 crore in the same quarter last year.

Similarly, expenses were down to Rs 1,418 crore as against Rs 3,536 crore.

The company said that present operating environment on account of Covid-19 though does not reflect the true comparison of the current results with those of the corresponding quarter last year.

In terms of operational parameters, SpiceJet has had a domestic passenger load factor of 73.1 per cent amongst all airlines in the country during the quarter.

“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,” said Ajay Singh, Chairman and Managing Director, SpiceJet.

“The performance in Q2 is even more significant and special as this was a seasonally weak quarter when demand is at its lowest.”

“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.”

According to Singh, the pandemic gave the company an unprecedented opportunity to further cut down costs and re-structure 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.”

Source: IANS

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