InvestorQ : Why did the Spice Jet losses widen in the Mar-21 quarter?
Lavanya Subramanian made post

Why did the Spice Jet losses widen in the Mar-21 quarter?

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Anamika Sodhani answered.
4 months ago
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SpiceJet reported a net loss of Rs.235 crore for the Mar-21 quarter, which was more than 4 times the sequential loss of Rs.53 crore in the Dec-20 quarter. Like other airlines, SpiceJet has also been hit by very tight and stringent travel restrictions in view of COVID 2.0. This has led to a wide divergence between the CASK and the RASK with negative bias. On a yoy basis, the loss reduced to Rs.807 crore loss compared to Rs.998 crore in the previous FY20 full year.

Empty seats and empty flights are a major challenge for airlines, and SpiceJet is no exception. However, there has been some respite on the cargo front thanks to the opportunities created by the COVID vaccine transportation. While passenger traffic plunged very sharply, the good news was that cargo operations grew 514% on a yoy basis. More importantly, the cargo business operates with 15% profit margin.

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