- While passenger business suffered thanks to the Covid-mandated restrictions, SpiceJet's cargo business continued to supply much-required lifeline to its overall operations
No-frills airline SpiceJet has reported a net loss of ₹235.34 crores for the quarter ended March 31, 2021, as the business remains under the clutches of the Covid-19 pandemic. The domestic carrier had posted a loss of ₹807 crores within the corresponding period of the previous fiscal. For the whole fiscal year 2020-21, the airlines saw its net loss widen to ₹998.3 crores from ₹934.76 crores in the previous fiscal.
While passenger business suffered thanks to the Covid-mandated restrictions, SpiceJet’s cargo business “continued to supply much-required lifeline” to its overall operations. On a segment basis, the revenue from cargo operations increased over 514 percent to ₹416.5 crores for Q4 FY21 with a profit of ₹67.8 crores in the corresponding previous quarter ending March 2020, the airline said during a regulatory filing on Wednesday.
SpiceJet claimed to possess posted industry’s highest domestic ratio at 77.3 percent during the half-moon of FY21, while its passenger revenue grew 15 percent sequentially.
Total income declined to ₹2,194.7 crores in Q4 FY21 from ₹3,057.34 crore Q4 FY20. For the complete fiscal, total income halved to ₹6,120.8 crores from ₹13,206.42 crores.
During its meeting to think about the financial results, the SpiceJet board also approved the proposal to hunt shareholders’ approval for raising ₹2,500 crores through the issue of eligible securities to qualified institutional buyers (QIBs).
“These funds are going to be wont to significantly strengthen our record,” said SpiceJet Chairman and director Ajay Singh.
The last fiscal posed multiple unprecedented challenges, said SpiceJet, as most parts of the planet went into lockdown. With the second wave of the pandemic in India and therefore the emergence of varied mutant variants, the airline said it continues to ascertain significant negative impact to demand aviation.
“However, whilst the corporate continues to watch the impact of the pandemic on its operations and economic condition, it’s also been implementing various mitigation strategies to guard its long-term sustainability,” SpiceJet assured.