The company’s freighter division however registered a profit of Rs 18 crore for the first quarter of FY 23.
SpiceJet also said that Chief Financial Officer Sanjeev Taneja has resigned and the company will be appointing a replacement in September.
The cash strapped airline, which announced delayed salary payment to employees today, has also passed a board resolution to appoint bankers to raise capital of $ 200 million (Rs 1,591 crore). At the end of FY 22, the company had cash and cash equivalents of Rs 9.6 crore and bank balances of Rs 50.72 crore.
The auditors of the company has raised material uncertainity about the company’s ability to continue as a going concern but the company’s management has said that the company has levers through raising of capital and fresh loans from lenders.
“With increase in passenger operation and yields, the company’s revenue has increased. The company is in further discussions with banks to raise additional funds under ECLGS 3.0 extension scheme and such discussions are in an advanced stage. The Board of Directors has also approved raising of fresh capital through issue of eligible securities in accordance with applicable law. Based on the foregoing and its effect on business plans and cash flow projections, the management is of the view that the Company will be able to achieve positive cash flow from operations and raise funds as necessary , in order to meet its liabilities,” it said.
The airline further stated that its business was severely impacted by record high fuel prices and a depreciating rupee and discounting the forex loss, the company would have reported a much reduced loss of Rs 420 crore in Q1 FY 23.
“Record high ATF prices and depreciating Rupee were the major contributors. Despite the complex operating environment and highest ever input costs, SpiceJet has been able to sustain its operations with the confidence shown by our partners and passengers. Last year was a period of restructuring and settlements and we successfully completed and implemented settlements with most of our major partners,” said Ajay Singh, promoter and CMD.
Singh said that the company will be inducting fresh capacity enhancement in both passenger and freighter business. “As we move ahead we are encouraged with the strong travel demand and our focus for the next year would be to induct more fuel efficient Boeing 737-8 MAX aircraft and concentrate on our regional and international routes,” he added.