SpiceJet, a low-cost airline and a leading air cargo operator, reported a net loss of Rs 235.3 crore in the fourth quarter of FY21 against a loss of Rs 807.1 crore in the same quarter of the previous year. For the full financial year 2020-21, SpiceJet reported a net loss of Rs 998.3 core.
The business has been severely impacted by the second wave of Covid-19 pandemic which adversely hit travel demand.
The board of directors for SpiceJet also approved a fundraising plan of up to Rs 2500 crore and took the decision to hoard off its Cargo business, which has generated a profit of Rs 130.9 crore for the full year.
For the Quarter ending March 2021, SpiceJet registered an industry’s highest domestic load factor of 77.3 per cent. Compared to the third quarter (Oct-Dec 20), the passenger revenue clocked a 15 per cent growth.
Though it loss on travel side, the cargo operations continued to do well. On a segment basis, the revenue from cargo operations increased by 518 per cent aggregating to Rs 1,117.5 crore for FY2021 with profit of Rs 130.9 crore for the full year against a loss of INR 134.2 crore for the previous year.
SpiceJet in a statement said “it continued to incur various costs owing to the grounding and the inability of Boeing 737 Max aircraft to undertake revenue operations for over two years now. SpiceJet continues to engage with Boeing to recover damages incurred by the Company due to the grounding of the MAX and also engage with aircraft lessor of the grounded MAX aircraft to restructure the present leases.”
In order to provide greater focus to cargo business and raise additional capital, the Spice Jet will hive off the cargo business to operate as a separate entity.
Spice Jet chairman Ajay Singh quoted saying “With vaccination touching record numbers and travel demand slowly picking up, we hope that the worst is behind us, but we remain extremely cautious about the future. While there is still much work and recovery to be done, we have managed to reduce our net loss in Q4 through re-structuring of our contracts which will have a significant positive impact in the long term.”
In terms of operational parameters, SpiceJet had the best passenger load factor amongst all airlines in the country. The average domestic load factor for the quarter was 77.3% while for fiscal 2021 it was 75.7%.