SpiceJet widens net loss for September quarter to Rs 838 crore

The total revenue from operations for the July-September quarter came in at Rs 2,104.7 crore, nearly 57 percent higher when compared to the same period last year.

The airline reported revenue from operations of Rs 1,342.6 crore in July-September last year, due to the outbreak of the second wave of the COVID-19 pandemic in India.

In April-June the airline had reported a topline of 1,865 crore.

However, when compared on a sequential basis SpiceJet's revenues fell 14 percent in July-September when compared to the previous quarter of April-June.

The airline's revenue from operations for the April-June period came in at Rs 2,457 crore,

The airline missed out on cashing in on a rebound in air travel from pandemic lows, as the Directorate General of Civil Aviation in July halved the airline's approved fleet due to a string of mid-air safety lapses.

Despite the fall in revenues, the airline said it has increased its number of flights by 30 percent.

SpiceJet's share of the domestic passenger market dropped to 7.7 percent in the September quarter from 9.7 percent in the previous three months, according to data from the DGCA.

On an Earnings Before Interest, Taxes, Depreciation, and Amortization basis, the airline's loss stood at Rs 413.59 crore for the reported quarter compared to a loss of Rs 106.4 crore for the quarter that ended September 2021.

In terms of operational parameters, SpiceJet reported an average domestic load factor of 85 percent for the quarter.

The airline said that its passenger Revenue per Available Seat-Kilometer (RASK) rose by 22 percent in July-September when compared to the same quarter last year.

Similarly, the carrier's Available seat miles (ASKM) rose 71 percent on-year in the July-September quarter. Its yield, a key profitability metric, rose 11 percent, which led to a 109 percent surge in passenger revenue, the airline said.

The airline did not share its exact figures for RASK, ASKM and yield for July-September.

“The sector has been witness to prolonged challenges, however, the recent enhancement in the ECLGS limit to Rs. 1,500 crore by the Government, recognizing these challenges will go a long way in providing the much needed stability to the sector. I am confident that SpiceJet will only grow stronger than ever with brand new planes, providing an unparalleled experience for its passengers,” the airlinés chairman and managing director Ajay Singh said in a press release.

The airline also said it looking to complete the transfer of logistics business to SpiceXpress in October-December.

SpiceJet had last year announced it was transferring its cargo and logistics services on a slump sale basis to its subsidiary SpiceXpress and Logistics .

SpiceXpress will also be able to raise capital independent of SpiceJet to fund this growth.

"The logistics business has been valued at Rs 2,555.77 crore based on an independent valuation exercise carried out by the company and the purchase consideration for the same shall be discharged by SpiceXpress by issuance of shares of SpiceXpress to SpiceJet, subject to all approvals as may be required," SpiceJet had said in a statement last year.

SpiceXpress reported a profit of Rs 21 Crore in September quarter.