SpiceJet reports combined loss of Rs 1,247 crore in Q4FY22 and Q1FY23

SpiceJet announced on Wednesday that it incurred losses of Rs 458 crore in Q4FY22 and Rs 789 crore in Q1FY23, due to high fuel prices, a depreciating rupee and the third wave of Covid-19.

With this, the overall loss incurred by SpiceJet in FY22 was Rs 1,725 crore, or 73 per cent wider than the FY21 figure.

The financially-beleaguered airline has been making losses the past four years. Moreover, it is currently operating less than 50 per cent flights, following the July 27 order of the aviation regulator in the wake of a spate of incidents.

SpiceJet will soon be engaging with investment bankers to raise up to $200 million, its Chairman and Managing Director Ajay Singh said in a statement on Wednesday.

The carrier said its Chief Financial Officer Sanjeev Taneja has resigned with effect from Wednesday.

“The Board has also identified the candidate for appointment as Chief Financial Officer of the company. The vacancy shall be filled in the month of September 2022 and the necessary disclosure regarding such appointment shall be made upon completion of all formalities,” it added.

Meanwhile, the Directorate General of Civil Aviation (DGCA) on Wednesday deregistered two more B737 aircraft of SpiceJet on a request by Irish lessor Horizon Aviation, officials said.

Horizon Aviation has been the third lessor in the past one month to put in an Irrevocable Deregistration and Export Request Authorisation (IDERA) with the aviation regulator to deregister B737 planes leased to SpiceJet. The IDERA is usually filed by a lessor when its negotiation with the airline regarding payment of dues fails.

The airline’s total income and expenses for Q4FY22 were Rs 2,124 crore and Rs 2,582 crore, respectively. In comparison, total income and expenses for the same period in FY21 were Rs 2,126 crore and Rs 2,361 crore.

During the first quarter of the current financial year, the airline earned Rs 2,478 crore and its expenses stood at Rs 3,267 crore. In the year-ago period, its income and expenses were Rs 1,265 crore and Rs 1,949 crore.

Singh said: “The industry has been witness to one of the most severe operating environments in the recent past, which impacted the progress and recovery made in Q3FY2022. Record high ATF (aviation turbine fuel) prices and depreciating rupee were the major contributors.”

He said last year was a period of restructuring and settlements with major partners, including aircraft manufacturers and lessors.

SpiceJet incurred losses of Rs 316 crore, Rs 934 crore and Rs 998 crore in FY19, FY20 and FY21, respectively.

On August 23, Singh had said the airline was exploring multiple options, including a stake sale to other airlines, in order to raise up to Rs 2,000 crore.

Aviation regulator DGCA had, on July 27, ordered SpiceJet to operate not more than 50 per cent of its flights for eight weeks after its planes were involved in eight technical malfunction incidents between June 19 and July 5.

Singh said on Wednesday: “We are optimistic about our future and our continued recovery, and in order to achieve our future plans the Board has mandated fresh capital issuance. The company will be shortly engaging with investment bankers for a potential raise of up to $200 million.”

Source: BSE