On a consolidated basis, Spicejet's net loss contracted to Rs 256.98 crore in Q4 FY21 compared with net loss of Rs 816.25 crore in Q4 FY20.
Net sales dropped 34.15% to Rs 1,829.77 crore in Q4 FY21 over Q4 FY20 as business continues to be severely impacted by the second wave of COVID-19 pandemic which has adversely hit operations and travel demand.
In terms of operational parameters, SpiceJet had the best passenger load factor amongst all airlines in the country. The average domestic load factor for the quarter was 77.3% while for fiscal 2021, it was 75.7%. Passenger revenue grew 15% in Q4 FY21 as compared to Q3 FY21. Spicejet sustained market leadership position in passenger RASK (revenue per available seat kilometre) amongst listed Indian peers. The company received significant revenue generated through charter business.
Spicejet has carried 39,693 ton of cargo in Q4 FY21 and transported 133 tonnes of COVID-19 vaccine between January 2021 to June 2021. The company has transported 50.50 million COVID‐19 vaccine doses till date.
During the financial year, Spicejet's reported a consolidated net loss of Rs 1,029.88 crore in Q4 FY21 compared with net loss of Rs 936.57 crore in Q4 FY20. Net sales tanked 58.46% to Rs 4,986.81 crore in Q4 FY21 as against Rs 12,005.50 crore in Q4 FY20.
The company said, "While there has been significant losses suffered on the passenger side of business, the dedicated cargo operations continued to provide much required lifeline to our over all operations." On a segmental basis, the revenue from cargo operations soared 518% to Rs 1,117.50 crore during FY2021, recording a profit of Rs 130.90 crore for the full year as against a loss of Rs 134.20 crore in the previous year. FY2021 posed multiple unprecedented challenges as most parts of the world went into lockdown. With the second wave of the pandemic and the emergence of various mutant variants, Spicejet continues to see significant negative impact to demand for air travel.
However, even as the company continues to monitor the impact of the pandemic on its operations and financial condition, it has also been implementing various mitigation strategies to protect its long-term sustainability. Spicejet continues to incur various costs owing to the grounding and the inability of Boeing 737 Max aircraft to undertake revenue operations for over two years now. The aviation firm continues to engage with Boeing to recover damages incurred by the company due to the grounding of the MAX and also engage with aircraft lessor of the grounded MAX aircraft to restructure the present leases.
Ajay Singh, the chairman and managing director (MD) of SpiceJet, said: "The intensity with which the second wave of COVID-19 struck and the unimaginable devastation it has caused, both for the already battered travel industry and generally, will take time to heal. To ensure our long-term growth and sustainable operation we have decided to raise funds of up to Rs 2,500 crore. These funds will be used to significantly strengthen our balance sheet."
"Much like the first wave, this time too, our cargo arm was exceptionally active and has performed extremely well transporting record quantities of supplies all across the globe. In order to provide greater focus to cargo business and raise additional capital, we will hive-off the cargo business to operate as a separate entity. The same will provide greater opportunity and flexibility in pursuing long term growth plan and strategies for the cargo business."
"With vaccination touching record numbers and travel demand slowly picking up, we hope that the worst is behind us but we remain extremely cautious about the future. While there is still much work and recovery to be done we have managed to reduce our net loss in Q4 through re-structuring of our contracts which will have a significant positive impact in the long term."
SpiceJet is India's low-cost airline that operates a fleet of Boeing 737s, Bombardier Q‐400s & freighters and is the country's largest regional player operating 63 daily flights under UDAN or the Regional Connectivity Scheme.
Meanwhile, the board has authorised to seek enabling approval of shareholders of the company (which will be valid for 365 days) for raising fresh capital of upto Rs 25,00,00,00,000 through issue of eligible securities to qualified institutional buyers, in accordance with the relevant provisions of applicable law and subject to receipt of applicable regulatory approvals, as may be required.
Shares of Spicejet fell 0.62% to Rs 80.50 on BSE. The scrip hovered in the range of Rs 79.45 to Rs 81.85 so far.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
