Why have the losses at Spice Jet widened in the June quarter?

SpiceJet reported quarterly loss at Rs.731 for the Jun-21 quarter, marking its sixth consecutive loss. Clearly, COVID 2.0 appears to have done the damage leading to a massive decline in passenger traffic. Travel demand had once again dipped in the June quarter after showing signs of revival in the March quarter. In Jun-20, the loss was Rs.600 crore. However, revenues at Rs.1,295 crore in Jun-21 quarter were higher by 83% yoy.

SpiceJet also had to contend with a sharp spike in expenses, which spiked by 55% to Rs.2,026 crore. Not surprisingly, the auditors have raised doubts about the ability of SpiceJet to continue as a going concern in the light of mounting losses and total erosion of net worth. Working capital is already deep in the negative. These losses are despite SpiceJet receiving Rs.170 crore as compensation from Boeing towards its 737 Max planes.