SpiceJet cut down its net loss in the traditionally weak Q2 despite Covid-19 continuing to affect demand. On a standalone basis, the net loss was reduced to INR 561.7 crore as against INR 729 crore in the first quarter of FY2022. Total revenue was INR 1,539 crore for the reported quarter as against INR 1,266 crore in the last quarter. For the same comparative period, operating expenses were INR 2,100 crore as against INR 1,995 crore. On an EBITDA basis, loss was INR 106.5 crore for the reported quarter as against loss of INR 244 crore for the last quarter.

SpiceXpress continued with its upward performance reporting increased revenue of INR 497 crore for the reported quarter as compared to INR 473 crore in the last quarter, a jump of 5%. The reported quarter though witnessed a negative cash flow as the continuing rise in fuel costs could not be passed on to our customers due to committed long term contracts. These have now been re-negotiated and corrected to suit the present operating cost environment.

Ajay Singh, Chairman and Managing Director, SpiceJet, said, “We have made excellent progress in our recovery and I expect this 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.”

“The return of the 737 MAX comes at the perfect time for us with passenger traffic picking-up and the government allowing airlines to operate at full capacity. We look forward to inducting additional capacity in the form of our 737 MAX aircraft that will upswing our operational efficiencies and provide significant cost saving capabilities.”

In the reported quarter, SpiceJet received shareholders’ approval to transfer its cargo and logistics services business to its subsidiary, SpiceXpress and Logistics Private Limited, as a going concern, on slump sale basis valued at INR 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.

Copyright 2022 Future Aviation Media Pvt Ltd, distributed by Contify.com, source Contify News