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SpiceJet significantly cuts down net loss in seasonally weak Q2 to INR 112.6 Cr led by strong & improved performance in both cargo & passenger businesses

Reports EBIDTA profit of INR 442 Cr  
Significant contribution of 32% in passenger revenues from charter services
Revenue from cargo increased by 157% Year on Year
Covid-19 continues to remain a cause of concern but sentiment improving

For the Quarter ending September 2020

  • Net loss of INR 112.6 crore as against INR 462.6 crore in the same period last year
  • EBIDTAR profit of INR 475 Cr
  • Revenue from cargo increased by 39% Quarter on Quarter
  • Registers industry’s highest domestic load factor of 73.1%
  • Capacity (in terms of seat kilometre for passenger segment) contracted by 71% as compared to same quarter last year
  • Revenue from operations fell by 63% due to COVID-19 compared to same quarter last year
  • Non-cash Ind-AS 116 impact of INR 171 crore

Key highlights

  • Launched seaplane services between Ahmedabad (Sabarmati riverfront) and the Statue of Unity in Kevadia, Gujarat adding a new dimension to travel and tourism industry
  • Introduces wide-body cargo planes for long-haul operations to Europe, Africa & CIS countries
  • Registers overall load factor of 75% including domestic & international operations supported with dynamic network strategy and multiple repatriation flights
  • Introduces its first wide-body A330-900 to operate 30 long-haul repatriation charter flights to Toronto, Milan, Rome, London and Amsterdam since August 1, 2020
  • First Indian carrier to introduce dedicated cargo flights connecting North East India to the rest of the country
  • Repatriated 2 lakh stranded Indian nationals by operating charters from various international markets
  • The only Indian carrier to operate 350 cargo and 195 repatriation charter flights from Ras-Al-Khaimah, UAE
  • Carried 42,000 tonnes of cargo in Q2
  • Re-structuring of aircraft leases & early return of aircraft thereby having long-term saving impact on costs
  • Likely return to service of the MAX in fourth quarter of FY2021 to boost operations and bring further cost efficiencies

Current Highlights

  • Operating 52% of pre-Covid schedule
  • Operating a fleet of 17 cargo aircraft including three wide-body planes
  • Carried 76,500 tonnes of cargo since the lockdown began
  • Cargo network spans over 63 domestic & 44 international destinations
  • Operated more than 1100 charter flights to repatriate passengers
  • In line with Prime Minister’s vision of Regional Connectivity, SpiceJet added flights to Darbhanga in Bihar & Nashik in Maharashtra

Gurugram, November 11, 2020: SpiceJet, the country’s favourite airline, significantly cut down its net loss in the traditionally weak Q2 despite travel restrictions and Covid-19 affecting demand. On a standalone basis the net loss was reduced to INR 112.6 crore as against INR 462.6 crore in the same period last year.
Total income was INR 1,305 crore for the reported quarter as against INR 3,074 crore in the same quarter last year. For the same comparative period, expenses were INR 1,418 crore as against INR 3,536 crore. On an EBITDA basis, SpiceJet achieved profit of INR 442 crore for the reported quarter as against INR 91 crore for the corresponding quarter last year. On an EBITDAR basis, the profit was INR 475 crore for the reported quarter as against profit of INR 154 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.

Ajay Singh, Chairman and Managing Director, SpiceJet, said, “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. The performance in Q2 is even more significant and special as this was a seasonally weak quarter when demand is at its lowest. Our Company and people have done some amazing work and I am proud of the determination and resilience they have shown.”

“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. The pandemic gave us the unprecedented opportunity to further cut down on costs and re-structure our 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.”

In terms of operational parameters, SpiceJet had the best domestic passenger load factor of 73.1% amongst all airlines in the country during the quarter.

Key business updates      

Sanjeev Taneja joins SpiceJet as its new Chief Financial Officer. He is a seasoned professional with illustrious track record of leading the finance function and business. He has worked across sectors and has contributed towards enhancing the efficiency and effectiveness of business. He brings over 27 years of business exposure and experience across reputed corporates such as Essar Ports, Mumbai International Airport, Damac Properties, Marg and other leading companies in the varied industries.

In line with its commitment to enhance regional connectivity, SpiceJet became the first Indian carrier to introduce dedicated cargo flights for North Eastern India. The airline aims to provide easy and quick access to farmers and businesses in the North East to transport their goods to the rest of the country while also facilitating easy transportation of essential cargo to the region.

Providing a major boost to tourism and continuing with its efforts to enhance regional connectivity, SpiceJet launched its seaplane service between Ahmedabad (Sabarmati riverfront) and the Statue of Unity in Kevadia, Gujarat. The airline also launched flights connecting Darbhanga with Delhi, Mumbai and Bengaluru and Nashik with Delhi, Bengaluru and Hyderabad.

Till date, since March 25, 2020 (when the lockdown began), SpiceJet has operated more than 9930 cargo flights transporting 76500 tonnes of cargo.

Besides keeping the country’s supply chain intact during the pandemic, SpiceJet has been at the forefront in repatriating stranded Indian nationals. Since April, SpiceJet has operated more than 1100 charter and Vande Bharat flights to help repatriate 2 lakh people to and from the UAE, Saudi Arabia, Oman, Qatar, Kuwait, Kabul, South Korea, Philippines, Kyrgyzstan, Kazakhstan, Russia, Netherlands, Lebanon, Georgia, Hong Kong, Bangladesh, Maldives, Uzbekistan, Turkmenistan and Sri Lanka.

SpiceJet has also operated 30 long-haul repatriation flights to and from London, Amsterdam, Toronto, Rome and Milan helping 8000 Indian and foreign nationals get back to their homes.

Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, intense competition in aviation sector including those factors which may affect our cost advantage, wage fluctuations, our ability to attract and retain highly skilled professionals, time and cost overruns on various parameters, our ability to manage international operations, reduced demand for air travel, liability for damages, withdrawal or expiration of governmental fiscal incentives, political instability, legal restrictions on raising capital or general economic conditions affecting our industry.
The words “anticipate”, “believe”, “estimate”, “expect”, “intend” and similar expressions, as they relate to us, are intended to identify certain of such forward looking statements. The Company may, from time to time, make additional written and oral forward-looking statements, including statements contained in our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.

About SpiceJet Ltd
SpiceJet is India’s favourite airline that has made flying affordable for more Indians than ever before. The airline has a fleet of 72 Boeing 737, 23 Bombardier Q-400s, 14 B737 & Bombardier Q-400 freighters and is the country’s largest regional player operating 57 daily flights under UDAN or the Regional Connectivity Scheme. The majority of the airline’s fleet offers SpiceMax, the most spacious economy class seating in India.

The airline also operates a dedicated air cargo service under the brand name SpiceXpress offering safe, on-time, efficient and seamless cargo connectivity across India and on international routes.