SpiceJet posts Rs 67 cr net loss in Q3 vs Rs 78 cr profit a year ago

SpiceJet posted Rs 66.7 crore consolidated net loss in third quarter of FY21 as the aviation and travel sector continues to face the adverse impact of the Covid-19 pandemic. In the same quarter last year, the airline had posted a net profit of Rs 77.9 crore.

While revenue from operations halved, SpiceJet benefitted due to Rs 209 crore of other income. This included claims due from aircraft manufacturer Boeing towards grounding of 737 Max aircraft and concessions in lease rent from lessors.

Total income for the reported quarter halved to Rs 1,901 crore from Rs 3,926 crore in same period last year.

“We have successfully managed to trim down our losses considerably with each passing quarter despite limited operations and muted demand,” airline’s chairman Ajay Singh said in a statement.

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“With our cargo business proving its true potential, the passenger business getting back on track significantly and a tight control on costs, we have managed to reduce our losses significantly in this quarter. There has been a remarkable recovery from where we were a few months back and with the world’s biggest vaccination drive underway I see a strong revival across sectors,” he added.

SpiceJet is currently operating 329 daily flights which is around 72 per cent of its pre-Covid capacity. Despite muted demand loads sequentially increased from 75 per cent to 78 per cent in third quarter of FY21, the airline said.

Cargo business revenue increased 36 per cent sequentially, it said. On a year on year basis cargo revenue was up nearly six fold to Rs 308 crore.

SpiceJet said continues to engage with Boeing to recover damages incurred by the company due to the grounding of the Max aircraft and the re-induction of these planes in the fleet.

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