SpiceJet Reports Q4 Net Loss At Rs 593 Crore Due To COVID-19

SpiceJet reported a net loss of Rs 593.4 crore for the June-ended quarter compared to a profit of Rs 261.7 crore in the same quarter. The company said that grounding of passenger airline operations due to coronavirus pandemic from 25 March to 25 May affected its revenue.

Further, it "is required to adhere to various regulatory restrictions, which impact its operations and may have their own additional financial implications."

"It is also to be noted that while generally the passenger business was suspended during the lockdown, the Company enhanced its cargo operations which were fulfilled by dedicated fleet of freighter aircraft and passenger converted aircraft. Due to the above, the prior period results are not comparable with those of the current quarter," the company said.

SpiceJet's revenue from cargo operations rose by 144 percent during the quarter to Rs 2,36.39 crore from Rs 96.85 crore in the same period a year ago.

The airline reported operating revenue of Rs 514.7 crore for the quarter against Rs 3,002.1 crore in the same period a year ago.

The losses have also caused the company's net worth to decline by Rs 2,170 crore as of 30 June 2020.

"This is the worst-ever crisis to hit the aviation sector but I am pleased that SpiceJet continues to innovate and outperform the industry. Flight operations were suspended for the most part of the quarter and the partial resumption of flights initially and the weak demand thereafter was a reminder of the significant problems that this pandemic has resulted in," said Ajay Singh, Chairman and Managing Director, SpiceJet, in the stock exchange filing on Tuesday.

"I am confident that as more and more States ease travel restrictions and business activity gets back to normal there will be a significant improvement in the operating environment for airlines and we are witnessing some early encouraging signs towards recovery," he added.