SpiceJet Q1 losses widen amid India’s second Covid-19 wave

Indian carrier SpiceJet saw its net loss for Q1 of its 2022 financial year widen to INR7.29b, compared with INR 5.9b a year earlier. Total revenue for the three months ended 30 June rose 79.6% to INR12.7 billion, as the carrier operated more capacity, but this was offset by India’s second wave of Covid-19, which hurt demand, according to its results statement. Operating results for SpiceJet’s passenger business were weaker, with an EBITDA loss of INR2.9b, widening from INR810m a year earlier. Passenger revenue, however, nearly doubled to INR6.2b. The carrier also managed a domestic load factor of 69.5% for the quarter. “The last five quarters have been the most difficult phase ever for SpiceJet as aviation remained the worst-hit sector during the second wave as well,” says chairman and managing director Ajay Singh. “[The first quarter] was severely impacted by the second wave as passenger traffic almost disappeared.” On bright spot was cargo, which generated revenues of INR4.7 billion, more than double that of a year earlier. The carrier says that the SpiceXpress unit saw a net profit of INR300m in Q1. The airline plans divest SpiceXpress, to better allow it to raise capital independently.<br/>