SpiceJet reports net loss of INR 420 Crore in Q1FY2023

SpiceJet, the country's favourite airline and the leading logistics platform, reported a net loss of INR 789 Crore (INR 420 Crore excluding forex adjustment) for the quarter ending June 30, 2022 as compared to a net loss of INR 729 Crore in the quarter ending 30 June, 2021 as business was severely impacted by record high fuel prices and a depreciating Rupee.

Total revenue for the reported quarter was INR 2,478 Crore as against INR 1,266 crore in the same quarter of the previous year. For the same comparative period, operating expenses were INR 3,267 Crore as against INR 1,995 crore. On an EBITDA basis, loss was INR 379 Crore for the reported quarter as against a loss of INR 244 crore for the quarter ended June FY2022. The airline continued to add new destinations to its network.

The airline reported a net loss of INR 458 Crore for the quarter ending March 31, 2022 against INR 235.3 Crore for the quarter ending March 31, 2021. Business was severely impacted by the third wave of Covid-19 and high fuel prices during Q4FY2022. SpiceJet reported a net loss of INR 1,725 Crore for FY2022 as compared to a net loss of INR 998.3 Crore in FY2021. The financial result for Q4FY2022 and FY2022 were delayed due to ransomware attack on our systems on May 25, 2022.

Ajay Singh, Chairman and Managing Director, SpiceJet, said, "The industry has been witness to one of the most severe operating environment in the recent past which impacted the progress and recovery made in Q3FY2022. Record high ATF prices and depreciating Rupee were the major contributors. Despite the complex operating environment and highest ever input costs, SpiceJet has been able to sustain its operations with the confidence shown by our partners and passengers. Last year was a period of restructuring and settlements and we successfully completed and implemented settlements with most of our major partners including manufacturers and lessors setting the stage for our seamless growth and expansion. As we move ahead we are encouraged with the strong travel demand and our focus for the next year would be to induct more fuel efficient Boeing 737-8 MAX aircraft and concentrate on our regional and international routes."

"We are optimistic about our future and our continued recovery and in order to achieve our future plans the Board has mandated fresh capital issuance and the Company will be shortly engaging with investment bankers for a potential raise of up to US $200 million."

"Our excellent cargo operations have provided the much required impetus and we will soon conclude the hive-off of cargo business into a separate independent company, SpiceXpress in the current quarter which will be followed by capacity enhancement with additional freighter aircraft within FY2023."

In terms of operational parameters, SpiceJet had the highest passenger load factor amongst all airlines in the country. Our average domestic load factor for the quarter ending 31st March, 2022 was 83.3% while for FY2022 it was 80.4%. SpiceJet had the highest PLF of 86.43% in Q1FY2023.

In FY2022, SpiceJet launched 140 new routes. During the quarter ending 31st March, 2022, the airline operated 411 charter flights carrying more than 65,000 passengers. Under 'Operation Ganga', SpiceJet flew back a large number of Indian students stranded in Ukraine. During the Q1FY2023, SpiceJet launched 24 new routes.

Source : Equity Bulls

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SpiceJet Q1FY23 ResultUpdate Airlines LogisticsPlatform