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SpiceJet reports a net loss of INR 729 crore on account of low market demand due to second wave of Covid-19

SpiceXpress – SpiceJet’s logistics platform – reports a Net Profit of INR 30 crore; revenue increased by 285% to INR 473 crore as compared to same quarter last year

For the Quarter ending June 2021

  • Registers industry’s highest domestic load factor of 69.5%
  • Sustained market leadership in passenger RASK amongst listed Indian peers
  • Capacity (in terms of Seat Kilometres) increased by 229% as compared to the same quarter last year
  • Revenue from Operations increased by 112% as compared to the same quarter last year
  • Non Cash Ind AS 116 Impact of INR 123.09 crore
  • EBIDTAR loss of INR 104 crore and Net Loss of 729 crore

Key highlights for the quarter – SpiceXpress

  • SpiceXpress’s network spans over 68 domestic & 111 international destinations including to US, Europe and Africa
  • Carried more than 43,000 tonnes of cargo in Q1 FY2022
  • Transported more than 33 million doses of Covid-19 vaccine in Q1 FY2022
  • Airlifted around 89,000 oxygen concentrators & Covid-19 relief material
  • Revenue of INR 473 crore in the reported quarter as against INR 166 crore in the same quarter last year
  • Net profit of INR 30 crore in Q1 FY2022

Key highlights for the quarter – Passenger

  • Operated 309 charters to various countries including UAE, Saudi Arabia, Georgia, Bangladesh, Uzbekistan, Croatia, Sri Lanka transporting over 52,000 passengers
  • Operated long-haul flights to and from Toronto and Rome
  • Launched SpicePlus, an ancillary product that offers a complete suite of benefits to customers including preferred seat, complimentary meal with beverage and priority services
  • Introduced special discounted fares for healthcare professionals who have been leading India’s fight against Covid-19
  • Revenue of INR 621 crore in Q1 FY2022 as against INR 349 crore in the same quarter last year
  • EBITDA loss of INR 291 crore in Q1 FY2022 as against loss of INR 81 crore in the same quarter last year
  • Net loss of INR 759 crore for the reported quarter as against loss of INR 642 crore in the same quarter last year

Gurugram, August 13, 2021: SpiceJet, India’s favourite airline and the leading logistics platform, reported a net loss of INR 729 crore in the first quarter of FY2022 as against a net loss of INR 593 crore in the same quarter of the previous year as flight operations were severely impacted due to Covid-19 second wave.

Total revenue was INR 1,266 crore for the reported quarter as against INR 705 crore in the same quarter of the previous year. For the same comparative period, operating expenses were INR 1,995 crore as against INR 1,298 crore. On an EBITDA basis, loss was INR 244 crore for the reported quarter as against loss of INR 5 crore for the quarter ended June FY2021.

The Company’s business operations were significantly hit due to the continued impact of Covid-19 which has had seriously impacted travel demand during the quarter ended June 2021.

SpiceXpress’s revenue increased by a whopping 285% to INR 473 crore for the reported quarter as compared to INR 166 crore in the same quarter last year.

Ajay Singh, Chairman and Managing Director, SpiceJet, said, “The last five quarters have been the most difficult phase ever for SpiceJet as aviation remained the worst-hit sector during the second wave as well. Q1 was severely impacted by the second wave as passenger traffic almost disappeared. While no one can predict the future, with vaccination numbers picking up and demand for air travel increasing steadily, we hope the trend reverses soon. I am confident that SpiceJet will recover lost ground quickly as we are continuously ramping up our operations adding new stations and flights and are much better placed than this time last year. Our logistics arm continued with its strong growth story reporting yet another profitable quarter. We are making efforts to further strengthen the logistics business and are hopeful of driving a strong and profitable growth in the times to come.”

“We are in the process of hiving off our logistics platform, SpiceXpress, which will unlock significant value for SpiceJet and its shareholders. This will also allow SpiceXpress to raise capital to fuel its rapid growth.”

The Company continues to incur various costs owing to the grounding and the inability of Boeing 737 Max aircraft to undertake revenue operations over the last two years now. SpiceJet continues to engage with Boeing to recover damages on account of expenses incurred by the SpiceJet due to the grounding of the 737 MAX and also engage with aircraft lessors of the grounded MAX aircraft to restructure the present leases.

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 69.5%.

SpiceJet launched 74 new flights during the quarter. The airline operated more than 300 charters transporting over 52,000 passengers across the globe. Since May 25, 2020, the airline has operated 1928 charters helping close to 3.37 lakh stranded passengers travel to their destinations. This also included over 25 wide-body charters to Europe & Canada.

SpiceJet has successfully vaccinated all its operating cabin crew with the first dose of the Covid-19 vaccine ensuring the safety of its employees and providing a safe travel experience to its customers.

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 operates a fleet of Boeing 737s, Bombardier Q-400s & freighters and is the country’s largest regional player operating 63 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.