Indian Low-cost carrier, SpiceJet disclosed yesterday their financial results for the quarter ending June 2020 where it made a net loss of INR 5.9 billion (USD 80 million) compared to a profit of INR 2.6 billion (USD 35.58 million) in the same period last year. Revenue from operations fell by 83% despite revenue from cargo increasing by 144% YoY emerging as the leading airline in India for Air Cargo. The disappointing results are due to the COVID-19 Pandemic impacting air travel all over the world.
The airline went on record to add that they operated 47% of their pre-pandemic schedule after they restarted operations, the airline for the quarter turned in operating revenues of INR 5.1 billion and operating expenses of INR 13 billion while the airline made operating revenues of INR 30 billion and operating expenses of INR 28.87 billion in the same period last year. Despite the fall in operating expenses YoY, the airline still couldn’t turn in a profit as revenue fell significantly in the period.
To improve revenue figures and take advantage of the rise in demand for air cargo, SpiceJet used passenger aircraft to operate cargo-only flights and have also converted 6 Q400s passenger aircraft to freighters
While Air Cargo performed well for the airline, they used 13 cargo aircraft which includes 2 widebody aircraft which they used to launch long haul cargo services. During the period the airline emerged as the largest air cargo airline in India carrying 50,000 tonnes of cargo on over 7000 flights serving 63 domestic and 44 international destinations.
Chairman and Managing Director of SpiceJet, Ajay Singh had this to say, “This is the worst-ever crisis to hit the aviation sector but I am pleased that SpiceJet continues to innovate and outperform the industry. Flight operations were suspended for most part of the quarter and the partial resumption of flights initially and the weak demand thereafter was a reminder of the significant problems that this pandemic has resulted in.”
“As expected, Team SpiceJet showed remarkable resilience to deal with a crisis situation, once again. Our performance during the last six months clearly signifies our positive attitude and our ability to find opportunity in adversity. This has seen us quickly bounce back with industry best load factors and emerge as India’s number one cargo company. I am confident that as more and more States ease travel restrictions and business activity gets back to normal there will be a significant improvement in the operating environment for airlines and we are witnessing some early encouraging signs towards recovery. I expect our cargo business to continue to expand in the coming quarters. I am also encouraged by the progress made in the re-entry of Boeing’s Max aircraft into service.”
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