SpiceJet Q2 losses narrow on cargo revenue growth

A steady increase in cargo revenue helped Indian low-cost carrier SpiceJet narrow its quarterly operating loss, even as passenger travel demand remains in the doldrums amid the coronavirus pandemic. For the quarter ended 30 September, the carrier reported an operating loss of Rs1.06b ($14.2m), significantly lower than the Rs6b loss it reported the previous quarter. Year on year, the loss was also lower: during the same period last year, SpiceJet racked up an operating loss of Rs4.6b. Revenue for the period fell 62% year on year to Rs10.7b, led mainly by a decline in passenger traffic revenue. However, a surge in freight and logistics revenue helped offset the revenue decrease. Year on year, SpiceJet saw its cargo revenue increase more than five-fold to Rs2.3b. Compared to the previous quarter, it represented a 37% jump. Expenses for the period fell about 60% year on year to Rs14.2b. SpiceJet adds that the ongoing Boeing 737 Max grounding has led to costs of around Rs1.4b for the quarter. The carrier reported a net loss of Rs1.06b, which was an improvement from the Rs4.6b net loss it reported last year. SpiceJet chairman and managing director Ajay Singh says the carrier will continue to expand its cargo business, tapping into burgeoning demand in the sector.<br/>