SpiceJet's net loss in Q4 FY20 totals Rs 807 crore
Jul 29, 2020
Gurugram (Haryana) [India], July 29 : Low-cost airline SpiceJet on Wednesday reported a net loss of Rs 807 crore in the fourth quarter of FY20, including a non-cash loss of Rs 473 crore due to forex loss on restatement of lease liability due to Ind-AS 116.
In the same quarter of the previous year, it had posted a profit of Rs 56 crore. SpiceJet said the business in Q4 FY20 was adversely impacted due to the Covid-19 pandemic and the nation-wide lockdown that resulted in the suspension of flight operations.
The airline reported a net loss of Rs 935 crore in FY 2020 that includes a non-cash loss of Rs 697crore due to forex loss on restatement of lease liability due to Ind-AS 116.
Operating revenues in Q4 were at Rs 2,864 crore and Rs 12,359 crore for the fiscal 2020. On an EBITDA basis, the loss was Rs 224 crore for the reported quarter and profit of Rs 1,274 crore for fiscal 2020.
SpiceJet said the previous financial year posed multiple unprecedented challenges such as the Covid-19 pandemic and the worldwide grounding of the Boeing 737 MAX which led to the overnight grounding of SpiceJet's MAX fleet.
On the grounded Boeing 737 MAX aircraft, the company continues to incur various costs with respect to these aircraft. During the quarter ended March 30, on account of its inability to undertake revenue operations, the company has recognised Rs 134.5 crore towards aircraft and supplemental lease rentals and other identified expenses.
This is a part recognition of the total reimbursements on which the company is working with the aircraft manufacturer towards various ascertained costs and losses incurred.
Chairman and Managing Director Ajay Singh said Indian and the global aviation industry are going through the toughest-ever phase in aviation history.
"Despite the year-long grounding of the MAX aircraft, SpiceJet ran a profitable operation till COVID hit demand from mid-February. We at SpiceJet have constantly adapted to the changing economic environment and I am happy that our cargo operations have performed very well."
Singh said he is confident that things will only improve in the times to come. "We remain cautious but optimistic about the future."
In terms of operational parameters, SpiceJet's average domestic load factor for the quarter was 90 per cent while for fiscal 2020 it was 92 per cent. For 58 months-in-a-row, SpiceJet has flown with over 90 per cent load factors in the Indian aviation market.
