SpiceJet on Wednesday reported narrowing of net loss to Rs 235.3 crore for the quarter ended March 2021, and announced that it will raise up to Rs 2,500 crore to ensure long-term growth and sustainable operations.
The budget carrier had posted a net loss of Rs 807 crore in the corresponding quarter of 2019-20.
For the full financial year 2020-21, the carrier reported a net loss of Rs 998.3 crore as compared with Rs 934.8 crore in the previous year.
Its total income during January-March 2021 stood at Rs 2,194 crore, significantly lower as against Rs 3,057 crore in the year-ago period, it said in a statement.
Total expenses during the March 2021 quarter stood at 2,430 crore as against Rs 3,864 crore a year ago, it said.
SpiceJet Chairman and Managing Director Ajay Singh 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 operations, we have decided to raise funds of up to Rs 2,500 crore. These funds will be used to significantly strengthen our balance sheet,” he added.
The company’s cargo arm, SpiceXpress, saw a significant increase in its revenue to Rs 416.5 crore in March 2021 quarter, from Rs 67.8 crore a year ago.
Scheduled domestic flight services were suspended in India from March 25 to May 24 last year due to the lockdown. The domestic flights resumed from May 25, 2020, but in a curtailed manner.
Scheduled international flights have been suspended in India since March 23, 2020, due to the coronavirus-triggered lockdown. However, special international passenger flights have been operating under the Vande Bharat Mission since May 2020 and under bilateral air bubble arrangements formed between India and other countries since July 2020.
