SpiceJet Severely impacted by the second Covid wave reports Q1 net loss at Rs 729 cr as COVID-19 wave impacts operations
Friday reported a loss of Rs 729 crore in April-June, 2021 — 23% more than the loss of Rs 593 crore posted in the same quarter previous fiscal year.
- The low-cost airline’s revenue in Q1 was Rs 1,266 crore, up from Rs 705 crore in the same period last year. Its share price closed 0.6% higher at Rs 71.9 on BSE on Friday.
- posted a 285% jump in its revenue to Rs 473 crore in Q1 as against Rs 166 crore reported in the same quarter last year.
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.
Chairman, and managing director
The first quarter (April-June 2021) was severely impacted by the second wave as passenger traffic almost disappeared,” said Ajay Singh, SpiceJet chairman, and managing director.
- “While no one can predict the future, with vaccination numbers picking up and demand air travel increasing steadily, we hope the trend reverses soon,” he said.
Continuously, Walker Chandiok & Co LLP, the auditors of SpiceJet, have once again raised doubts about the airline’s ability to continue as a going concern as mounting losses have led to complete erosion of net worth, with current liabilities exceeding current assets by ₹6,044.91 crores as of 30 June 2021.
“These conditions, together with uncertainties relating to the impact of the ongoing covid-19 pandemic on the operations of the company…. indicate the existence of a material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern,” it said.
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