The company’s sales, however, rose 27 per cent year-on-year to Rs. 1,342.5 crore aided by the reopening of the economy due to falling COVID-19 cases and a higher vaccination rate.
The net loss posted by the company was largely on account of a sharp rise in operating costs in the quarter driven mainly by fuel expenses. Jet fuel costs surged 120 per cent year-on-year to Rs. 615 crore for the company followed by a rise in aircraft lease rentals.
The company’s business operations continued to be significantly impacted due to the second wave of Covid-19 which continued to impact travel demand negatively during the quarter ended September 2021, SpiceJet said.
“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,” said Ajay Singh, chairman, and managing director at SpiceJet.
Singh said that the company is looking forward to inducting additional Boeing 737 MAX aircrafts to improve efficiencies and reduce costs.
The company’s operating profit improved 149 per cent sequentially to Rs. 50.6 crore in the quarter due to the low base of the previous quarter.
Shares of SpiceJet ended 0.8 per cent higher at Rs. 73.8 on the National Stock Exchange.
