SpiceJet's losses widen in Q4FY22, Q1FY23; CFO Sanjeev Taneja resigns

In a stock exchange filing, the company said it has resolved to infused additional capital of up to $200 mn into the airline

Low-cost carrier SpiceJet Ltd said on Wednesday Chief Financial Officer Sanjeev Taneja had resigned amid widening losses and a series of mid-air incidents.

SpiceJet on Wednesday reported a widening of net loss to Rs 789 crore for the three months ended June, mainly hit by high fuel prices and a fall in the rupee.

The low-cost carrier, which has been facing turbulent times, had a net loss of Rs 729 crore in the quarter ended June 2021.

"Total revenue for the reported quarter was Rs 2,478 crore as against Rs 1,266 crore in the same quarter of the previous year," the airline said in a release.

For the quarter ended March 2022, the airline posted a net loss of Rs 458 crore. In the year-ago period, it had a net loss of Rs 235.3 crore.

SpiceJet said it would raise funds up to $200 million. Some banks have raised concerns about loans to the carrier.

Ajay Singh, Chairman and Managing Director, SpiceJet, said, “The industry has been witness to one of the most severe operating environment in the recent past whichimpacted the progress and recovery made in Q3FY22. Record high ATF prices and depreciating rupee were the major contributors. Despite the complex operating environment and highest ever input costs, SpiceJet has been able to sustain its operations.

"Last year was a period of restructuring and settlements and we successfully completed and implemented settlements with most of our major partners including manufacturers and lessors setting the stage for our seamless growth and expansion. As we move ahead we are encouraged with the strong travel demand and our focus for the next year would be to induct more fuel efficient Boeing 737-8 MAX aircraft and concentrate on our regional and international routes.

“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 and the company will be shortly engaging with investment bankers for a potential raise of up to $200 million.”

In terms of operational parameters, SpiceJet said it had the highest passenger load factor amongst all airlines in the country. "Our average domestic load factor for the quarterending 31st March, 2022 was 83.3% while for FY2022 it was 80.4%. SpiceJet had the highest PLF of 86.43% in Q1FY2023," said Singh.

On Tuesday, SpiceJet's scrip on BSE closed 1.5% higher at Rs 46.30.