Spicejet Q2 Earnings: Airline cuts down net loss to Rs 112.6 crore, appoints new CFO

SpiceJet significantly cut down its net loss in the traditionally weak second quarter ended September, despite travel restrictions and COVID‐19 affecting demand.

On a standalone basis, the net loss for Q2FY21 reduced to Rs 112.6 crore as against Rs 462.6 crore in the same period last year, the company said in a BSE filing.

Total income in Q2 stood at Rs 1,305 crore against Rs 3,074 crore in the same quarter last year.

For the same comparative period, expenses were Rs 1,418 crore against Rs 3,536 crore.

"Despite COVID‐19 continuing to pose serious operating challenges we have managed to significantly cut down our net loss in Q2 much like the previous quarter. The performance in Q2 is even more significant and special as this was a seasonally weak quarter when demand is at its lowest," said Ajay Singh, chairman and managing director (CMD), SpiceJet.

On an EBITDA basis, SpiceJet said it achieved a profit of Rs 442 crore for the reported quarter against Rs 91 crore for the corresponding quarter last year. Adding rent to the decutible, the profit was Rs 475 crore for the reported quarter against a profit of Rs 154 crore for the same quarter last year.

In terms of operational parameters, SpiceJet said it had the best domestic passenger load factor of 73.1 percent amongst all airlines in the country during tQ2.

The company said the present operating environment on account of COVID‐19 though does not reflect the true comparison of the current results with those of the corresponding quarter last year.

"Going forward, as our cargo business continues to expand, passenger demand further improves, travel restrictions are eased and the 737 MAX returns to service we hope the recovery will be much quicker and stronger," said the company's Chairman and Managing Director.