SpiceJet Announces a First Quarter FY21 Net Loss of $80.6 Million on Revenue of $69.9 Million
SpiceJet announced on Tuesday a FY21 first quarter net loss of INR 593.4 crore (USD $80.6 million) compared to a profit of INR 261.7 crore (USD $35.5 million) during the same period last year.
On Tuesday, Indian carrier SpiceJet announced their first quarter FY21 results for the period ending June 30, 2020. The carrier reported a net loss of INR 593.4 crore (USD $80.6) million versus a Q1 FY20 profit of INR 261.7 crore (USD $35.5 million). Operating revenue for the quarter declined year-over year to INR 514.7 crore (USD $69.9 million) compared to INR 3,002.1 (USD $407.7 million). The carrier reported a first quarter EBITDAR profit of INR 13.5 crore or USD $4.3 million. During the quarter, SpiceJet restructured aircraft leases and returned some aircraft early, resulting in long-term cost savings.
Despite the pandemic, SpiceJet has maintained a market share above 16% and has emerged as India’s Number one cargo airline. The carrier expects their Boeing 737 MAX fleet to return to service in the fiscal fourth quarter of FY21, thereby boosting operations. During the quarter, SpiceJet received approval from the DGCA (Indian regulatory authority) to conduct drone trials and the airline also launched a new frequent flyer program as well as a complimentary inflight entertainment system. Currently, the airline is operation 47% of their pre-pandemic schedule and a cargo fleet of 13 aircraft including two wide-bodies. SpiceJet’s cargo network spans over 63 domestic and 44 international destinations and the carrier has transported over 50,000 tons of cargo on over 7,000 flights. In Tuesday’s announcement, SpiceJet’s Chairman and Managing Director, Ajay Singh, said,
“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 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. As expected, Team SpiceJet showed remarkable resilience to deal with a crisis situation, once again. Our performance during the last six months clearly signifies our positive attitude and our ability to find opportunity in adversity. This has seen us quickly bounce back with industry best load factors and emerge as India’s number one cargo company. 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. I expect our cargo business to continue to expand in the coming quarters. I am also encouraged by the progress made in the re-entry of Boeing’s Max aircraft into service.”
On April 7, 2020, SpiceJet operated India’s first “cargo on seat” flight carrying critical supplies in the cabin and belly hold space and the carrier has continues to operate Boeing 737 and Q400 (now De Havilland Canada DASH 8-400) passenger aircraft with cargo in the cabin. The carrier has converted six Q400s into freighters for service to second and third tier cities in the North East, Jammu & Kashmir and Himachal Pradesh. The airline is actively using Ras Al-Khaimah Airport as a cargo base for international service to Almaty, Abu Dhabi, Baghdad, Bahrain, Bangkok, Bishkek, Cambodia, Cairo, Cebu, Chad, Colombo, Dhaka, Doha, Dubai, Guangzhou, Ho Chi Minh, Hong Kong, Hangzhou, Seoul-Incheon, Jakarta, Kabul, Kathmandu, Khartoum, Kyrgyzstan, Kuala Lumpur, Kuwait, Male, Myanmar, Shanghai, Singapore, Sharjah, Sulaymaniyah, Tashkent, Ukraine, among others.