SpiceJet logs ₹593 cr. loss, revenue plunges to a sixth

Carrier delays payments to vendors

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Low-cost carrier SpiceJet on Tuesday reported a net loss of ₹593.4 crore in the first quarter ended June, compared with a profit of ₹261.7 crore in the year-earlier quarter.

This figure includes the ₹195 crore as income in the form of compensation from Boeing for the 13 grounded 737 MAXs, which the airline is yet to receive.

The airline’s operating revenue shrunk to a sixth of its pre-COVID-19 levels and stood at ₹514.7 crore for the reported period as against ₹3,002 crore in the same quarter last year.

Operating expenses were reduced by half to ₹1,303 crore, as more than half the fleet remained grounded because of government regulations for COVID-19.

Contraction of 90%

In a statement, the airline said it was operating 47% of its aircraft and that its capacity utilisation, or passenger seat kilometres, in the quarter contracted by 90%.

“On account of its operational and financial position, and the impact of the ongoing COVID-19 pandemic, the company has deferred payments to various parties, including vendors and its dues to statutory authorities,” the carrier added in the statement.