Approves fund raise of up to INR 2500 Crore
Cargo business to be hived-off
For the Quarter ending March 2021
· Registers industry’s highest domestic load factor of 77.3%
· Passenger revenue grows by 15% as compared to Q3
· Sustained market leadership in passenger RASK amongst listed Indian peers
· Significant revenue generated through charter business
Key highlights for the quarter – Cargo
· Revenue of INR 416.5 Crore for the quarter ending March 2021 against INR 67.8 Crore in corresponding previous quarter ending March 2020
· Net profit of INR 40.2 Crore for the quarter ending March 2021 against loss of INR 59.6 Crore for the corresponding previous quarter
· EBITDA profit of INR 66.5 Crore for the quarter ending March 2021 against a loss of INR 37.5 Crore for the corresponding previous quarter
· Carried 39,693 ton of cargo in Q4
· Transports 133 ton of Covid vaccine between January – June, 2021
· Emerges as the most preferred airline for transportation of Covid‐19 vaccine; transported 50.5 million Covid‐19 vaccine doses till date
Key highlights for the quarter – Passenger
· Significant contribution in passenger revenues from charter services
· Launched RT PCR test at exclusively discounted price of INR 299/- and INR 499/- for customers flying with SpiceJet and customers flying with OAL respectively, against the general market price of INR 799/1200 by other labs
· Launched exclusive product ‘Free date change’ and ‘Full Refund’ for COVID affected customers
Key highlights for the year – Cargo
· Increase of 518 % in the cargo revenue to INR 1,117.5 Crore
· Net profit of INR 131 Crore for the year ending March 2021 against loss of INR 134 Crore in the corresponding previous year
· EBITDA profit of INR 225.8 Crore for the year ending March 2021 against a loss of INR 76.5 Crore in the corresponding previous year
· Introduces wide-body cargo planes for long-haul operations to Europe, Africa & CIS countries
· Added a Boeing 767 & Airbus A330 to its cargo fleet
· Launched scheduled freighter services to Bangkok and Singapore
· Operating a fleet of 20 cargo planes including 8 wide-body aircraft
· Continues to remain leading air cargo operator in India — operated more than 20,764 cargo flights and carried 1,68,976 ton of cargo since March 2020
· Cargo network spans over 63 domestic & 111 international destinations
· Airlifts 87,170 oxygen concentrators between 28 April to 15 June, 2021
Key highlights for the year – Passenger
· Reports a net loss of INR 998.3 Crore in FY2021;
· Operated more than 1,675 charter flights to repatriate over 3 lakh passengers
· Added Ras-Al-Khaimah as its latest international destination
· Added Darbhanga & Nashik under UDAN
· Registers domestic load factor of 75.7% for the fiscal
· Operated multiple charter flights on Airbus 330, Airbus 340, Boeing 777 and Airbus 321
· During this pandemic, SpiceJet operated charter flights to various countries including UAE, Saudi Arabia, Oman, Qatar, Kuwait, Kabul, South Korea, Philippines, Kyrgyzstan, Kazakhstan, Russia, Netherlands, Lebanon, Georgia, Hong Kong, Bangladesh, Maldives, Uzbekistan, Turkmenistan, Malaysia and Sri Lanka
· SpiceJet has also operated long-haul flights to and from London, Amsterdam, Toronto, Rome and Milan helping Indian and foreign nationals get back to their homes
· First airline to offer the ‘COVID-19 Insurance product’ for its customers in partnership with Digit Insurance
· SpiceJet was the first to offer the ‘private row online booking option’ for its customers to help them with social distancing at 35000 feet
· Introduced the ‘Zero Cancellation’ product in partnership Liberty General Insurance for its customers
· Honoured with ‘Four Star Low Cost Carrier 2021’ by APEX – The Airline Passenger Experience Association
SpiceJet, India’s favourite airline and the leading air cargo operator, reported a net loss of INR 235.3 Crore in the fourth quarter of FY21 against a loss of INR 807.1 Crore in the same quarter of the previous year as business continues to be severely impacted by the second wave of Covid-19 pandemic which has adversely hit operations and travel demand. The airline reported a net loss of INR 998.3 Crore in FY 2021.
While there has been significant losses suffered on the passenger side of business the dedicated cargo operations continued to provide much required lifeline to our over all operations. On a segment basis the revenue from cargo operations increased by 518% aggregating to INR 1,117.5 Crore for FY2021 with profit of INR 130.9 Crore for the full year against a loss of INR 134.2 Crore for the previous year. FY2021 posed multiple unprecedented challenges as we saw most parts of the world going into lockdown. With the second wave of the pandemic and the emergence of various mutant variants, the Company continues to see significant negative impact to demand for air travel. However, even as the company continues to monitor the impact of the pandemic on its operations and financial condition, it has also been implementing various mitigation strategies to protect its long-term sustainability.
The Company continues to incur various costs owing to the grounding and the inability of Boeing 737 Max aircraft to undertake revenue operations for over two years now. SpiceJet continues to engage with Boeing to recover damages incurred by the Company due to the grounding of the MAX and also engage with aircraft lessor of the grounded MAX aircraft to restructure the present leases.
Ajay Singh, Chairman and Managing Director, SpiceJet, said, “The intensity with which the second wave of Covid-19 struck and the unimaginable devastation it has caused, both for the already battered travel industry and generally, will take time to heal. To ensure our long term growth and sustainable operation we have decided to raise funds of up to INR 2,500 Crore. These funds will be used to significantly strengthen our balance sheet.”
“Much like the first wave, this time too, our cargo arm was exceptionally active and has performed extremely well transporting record quantities of supplies all across the globe. In order to provide greater focus to cargo business and raise additional capital, we will hive-off the cargo business to operate as a separate entity. The same will provide greater opportunity and flexibility in pursuing long term growth plan and strategies for the cargo business.”
“With vaccination touching record numbers and travel demand slowly picking up, we hope that the worst is behind us but we remain extremely cautious about the future. While there is still much work and recovery to be done we have managed to reduce our net loss in Q4 through re-structuring of our contracts which will have a significant positive impact in the long term.”
In terms of operational parameters, SpiceJet had the best passenger load factor amongst all airlines in the country. The average domestic load factor for the quarter was 77.3% while for fiscal 2021 it was 75.7%.
