SpiceJet Slumps to Loss; Books Income on Boeing Max Compensation
(Bloomberg) -- Indian budget carrier SpiceJet Ltd. posted a quarterly loss that was wider than consensus as the coronavirus pandemic hit the industry, even after it booked an income based on expected compensation from Boeing Co. for grounded 737 Max jets.
The carrier, one of the top buyers of the jets, expects the plane to return to service in the first quarter of 2021.
- SpiceJet posted a loss of 8 billion rupees ($106 million) in the three months through March, compared with a profit of 562.9 million rupees in the same period a year earlier. That included other income of 1.3 billion rupees related to costs incurred during Boeing 737 Max grounding. Bloomberg consensus was for a loss of 6.79 billion rupees
- The airline has yet to report results for the quarter ending June 30. That is likely to be an even tougher period as the coronavirus took hold in India, prompting the government to suspend all flights for most of April and May. It has since allowed only limited flights with a cap on airfares.
- SpiceJet, the only Indian airline with a dedicated freighter fleet, has transported about 26,000 tonnes of cargo on more than 4,650 flights since the nationwide lockdown began on March 25
- The airline, which was temporarily grounded in 2014 after running out of cash, made a comeback under co-founder Ajay Singh, who returned to the company in 2015. However, the airline is now among the most likely in the world to go bankrupt without any fresh infusion of funds, according to a Bloomberg analysis.
- SpiceJet shares were up 0.7% at 48.30 rupees Wednesday in Mumbai. They have fallen almost 60% this year.
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