NEW DELHI: With domestic air travel showing signs of revival in the July-September quarter, listed airlines are seeing their losses dropping sharply in Q2 over Q1 this fiscal.
SpiceJet on Wednesday reported a Q2 loss of Rs 112.6 crore as opposed to loss of Rs 463 crore in same period last fiscal and a loss of Rs 593 crore this Q1. In the first six months of this fiscal, the airline has lost Rs 706 crore — or over Rs 3.8 crore daily. SpiceJet’s scrip closed 5% higher at Rs 54 on BSE Wednesday.
Meanwhile to survive till its divestment process is decided, Air India is seeking to raise Rs 6,150 crore as sovereign guarantee-backed loan from domestic lenders by the month end.
SpiceJet’s total Q2 income was Rs 1,305 crore, as against Rs 3,074 crore in the same quarter last year. Hoping that the “worst is behind us”, airline CMD Ajay Singh said: “Despite Covid-19 continuing to pose serious operating challenges we have managed to significantly cut down our net loss in Q2.… The performance in Q2 is even more significant and special as this was a seasonally weak quarter when demand is at its lowest. Our company and people have done some amazing work and I am proud of the determination and resilience they have shown…. Going forward, as our cargo business continues to expand, passenger demand further improves, travel restrictions are eased and the 737 MAX returns to service we hope the recovery will be much quicker and stronger.… The pandemic gave us the unprecedented opportunity to further cut down on costs and re-structure our contracts and aircraft leases to align with current operating environment while at the same time operating the full schedule as was permitted. What we have managed to do in the last few months will have a significant long term impact.”
