SpiceXpress Q2 revenue up 5 percent to Rs 497 crore

SpiceXpress, the hived-off cargo business of SpiceJet, reported a 5 percent increase in revenue of Rs 497 crore for the second quarter ended September 30, 2021 compared to Rs 473 crore in the last quarter.

SpiceXpress carried more than 45,000 tonnes in Q2FY2022, five percent higher than 43,000 tonnes carried in Q1FY2022.

It is now operating a fleet of 17 aircraft including seven wide-body planes, an official statement said.

“The reported quarter though witnessed a negative cash flow as the continuing rise in fuel costs could not be passed on to our customers due to committed long-term contracts. These have now been re-negotiated and corrected to suit the present operating cost environment,” the statement added.

SpiceJet reported a consolidated net loss of Rs 570 crore for the second quarter compared to Rs 731 crore in Q1FY22. While consolidated revenue from operations increased 20 percent to Rs 1,304 crore, expenses were up to four percent to Rs 2,103 crore.

Positive tailwinds for the airline, according to the statement, include the return of the 737 MAX in Q3FY2022, settlement with the majority of MAX lessors, transfer of logistics business, and shareholder approval for fund raise of up to Rs 2,500 crore.

“We have made excellent progress in our recovery and I expect this trend to continue forward in the coming quarters,” said Ajay Singh, chairman and managing director, SpiceJet. “With the nationwide vaccination drive growing at an unprecedented pace across geographies, there is a significant jump in travel demand and we are very excited about the demand recovery. The settlement with key lessors, the return of the 737 MAX in the current quarter (Q3), transfer of the logistics business and some very significant announcements lined up soon are all positive tailwinds that should have a significant impact on our long term plans.

“The return of the 737 MAX comes at the perfect time for us with passenger traffic picking-up and the government allowing airlines to operate at full capacity. We look forward to inducting additional capacity in the form of our 737 MAX aircraft that will upswing our operational efficiencies and provide significant cost-saving capabilities.”

For the first half of the year, revenue from operations increased 57 percent to Rs 2,388 crore and net loss increased to Rs 1,302 crore.