Low-cost carrier SpiceJet reported its biggest-ever stand-alone quarterly net loss at Rs 838 crore for the quarter ended September 2022. Adverse foreign exchange rates, fuel prices and pricing pressure were the primary reason behind the net loss which increased 49% compared to the same quarter last year.
The foreign exchange loss for the quarter stood at Rs 260 crore while the aviation turbine fuel (ATF) expense nearly doubled to Rs 1,226 crore. Total revenue from operations jumped 45% to Rs 1,953 crore during the reporting quarter. Ebitda loss jumped nearly four-fold to Rs 413 crore, the company stated.
The company’s net loss overshot the Bloomberg estimate of Rs 614 crore, while revenue fell short of the estimates of Rs 2,170 crore. The company’s net worth was negative Rs 5,910 crore.
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The carrier flew 23.38 lakh passengers during the September quarter in the domestic market posting a market share 7.7%. It had the best load factor of 85% among its peers during the quarter.
September saw the full impact of the restriction slapped by the regulator DGCA as per which SpiceJet could operate only 50% of its flights. These restrictions were lifted just before the start of the winter schedule in late October.
Ajay Singh, chairman and managing director, SpiceJet said, “The high ATF price and depreciating rupee continue to be a downer for the industry but the overall outlook for the sector remains positive.”
Having completed a series of settlements with most of its major partners and the upcoming hive-off of its cargo and logistics arm, the company expects significant improvements in its operating environment.
During the quarter, the company raised funds for an amount of Rs 60 crore under the Emergency Credit Line Guarantee Scheme (ECLGS) scheme. Additionally, the company has further raised Rs 150 crore in October 2022. The company is in discussions with banks to raise additional funds under ECLGS 3.0 extension scheme and such discussions are in an advanced stage.
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“The Board has also approved for raising of fresh capital through issue of eligible securities to qualified institutional buyers. Based on the foregoing and their effect on business plans and cash flow projections, the management is of the view that the company will be able to achieve profitable operations and raise funds as necessary, in order to meet its liabilities as they fall due,” SpiceJet said in a statement.