SpiceJet posts a loss in Q4 on weak demand || suspension of flight operations due to COVID-19

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SpiceJet, reported a net loss of INR 807.1 crore in the fourth quarter of FY20 against a profit of 56.3 crore in the same quarter of the previous year as business was adversely impacted due to the COVID-19 pandemic and the nation-wide lockdown that resulted in suspension of flight operations. The airline reported a net loss of INR 934.8 crore in FY 2020.(07 end)
“SpiceJet Q4 results: Losses at Rs 807.1 crore” “suspension of flight operations due to COVID-19”

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(08)Operating revenues were at INR 2,863.9 crore for the reported quarter and INR 12,358.6 crore for the fiscal 2020. On an EBITDA basis, loss was INR 223.6 crore for the reported quarter and profit of INR 1,273.9 crore for the fiscal 2020. On an EBITDAR basis, the loss is INR 90.9 crore for the reported quarter and profit of INR 1,636.8 crore for the fiscal 2020. (08 end)
(09)FY2020 posed multiple unprecedented challenges such as the COVID-19 pandemic and the world-wide grounding of the Boeing 737 MAX which led to the overnight grounding of SpiceJet’s MAX fleet. On the grounded Boeing 737 MAX aircraft, the Company continues to incur various costs with respect to these aircraft and during this quarter ended March 30, 2020 on account of its inability to undertake revenue operations, the Company has recognized INR 134.5 crore towards aircraft and supplemental lease rentals and other identified expenses, as Other Income for the reported quarter. This is a part recognition of the total reimbursements, on which the Company is working with the aircraft manufacturer, towards various ascertained costs and losses incurred by the Company on this aircraft.(09 end)
(10)According to Ajay Singh, Chairman and Managing Director, SpiceJet, “Two key factors that adversely impacted the performance and bottom line was the COVID-19 pandemic that started affecting demand adversely from mid-February and grounding of the 737 MAX, which has been out of service for over a year now. Despite the year long grounding of the MAX aircraft, SpiceJet ran a profitable operation till COVID hit demand from mid-February. Indian and the global aviation industry are going through the toughest-ever phase in aviation history. (10 end)