On November 2, SpiceJet recorded a decline of Rs 561.7 crore for the quarter ended September 2021 (Q2FY22). The company witnessed a loss of Rs 112.5 crore during the year-ago period. During the previous quarter (June 2021), the decline reached Rs 729 crore.
Income from services arrived at Rs 1,301.7 crore, up 28 per cent against Rs 1,016.1 crore in the similar quarter of the prior fiscal. Total income from operations arrives at Rs 1342.5 crore, up 27.2 per cent against Rs 1,055 crore logged in the September 2020 quarter.
However, the company’s sales increased 27 per cent year-on-year to Rs. 1,342.5 crore assisted by the market’s reopening due to declining COVID-19 cases and a higher vaccination rate. The net loss posted by the company was essentially on a report of an apparent increase in managing costs in the quarter pushed practically to fuel costs. Jet fuel costs rose 120 per cent year-on-year to Rs. 615 crore for the company, accompanied by a surge in aircraft lease rentals.
SpiceJet said that the company’s business services remained majorly affected due to the second wave of COVID-19, which negatively affected the travel rush during the quarter ended September 2021. “With the nationwide vaccination drive growing at an unprecedented pace across geographies, there is a significant jump in travel demand, and we are very excited about the demand recovery,” said Ajay Singh, chairman and managing director at SpiceJet.
Singh said that the company seeks to initiate further Boeing 737 MAX aircraft to enhance effectiveness and decrease expenses.
The company’s operating profit increased 149 per cent sequentially to Rs. 50.6 crore in the quarter due to the low base of the previous quarter. Shares of SpiceJet finished 0.8 per cent higher at Rs. 73.8 on the National Stock Exchange.