SpiceJet Ltd shares fall nearly 15% to one-month low 39.6 on the BSE in Thursday’s trading session after the low-cost carrier posted a big quarterly loss due to higher fuel costs and unfavorable foreign exchange rates and the resignation of its Chief Financial Officer (CFO) Sanjeev Taneja.
Company reported widening net loss Higher fuel prices and rupee depreciation adversely impacted the budget carrier by Rs 789 crore for the first quarter ended June 2022. SpiceJet had a net loss of 729 crore in the quarter ended June 2021. Meanwhile, its total revenue for the reported quarter was 2,478 crore as against 1,266 crore, an increase of 126% YoY (YoY).
The airline plans to raise $200 million, which is approx. 1,600 crore at current exchange rates and is expected to wind up its profitable cargo business into a separate company in the current quarter.
Ajay Singh, Chairman and Managing Director, SpiceJet said, “The industry has been witnessing one of the most severe operating environments in recent times, which impacted the progress and recovery made in Q3 FY2022. Record high ATF prices and Rs. Depreciation was the major contributor.”
In terms of operational parameters, SpiceJet had the highest passenger load factor among all the airlines in the country. The average household load factor for the quarter ended March 31, 2022 was 83.3% as against 80.4% for FY 2022. SpiceJet had the highest PLF of 86.43% in Q1 FY2023.
The airline also took note of the resignation of the company’s Chief Financial Officer Sanjeev Taneja with effect from August 31, 2022. The Board has also identified a candidate for appointment as the Chief Financial Officer of the Company. This vacancy will be filled in the month of September 2022 and necessary disclosure regarding such appointment will be made after completing all the formalities, it said.
SpiceJet’s shares are down about 36% so far in 2022 (YTD), while the airline’s stock is down about 39% in the one-year period. The stock on Thursday posted its biggest intra-day percentage decline since October 2021.
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