SpiceJet reports loss of Rs 1,725 crore in FY22; CFO resigns – Times of India

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NEW DELHI: Struggling carrier SpiceJet has reported a loss of Rs 458 crore in January-March quarter, against a loss of Rs 235 crore in same period last year.
In FY2022, the airline lost Rs 1,725 crore, against a loss of Rs 998 crore in the previous fiscal.
While announcing its much-delayed result on Wednesday, SpiceJet said in a regulatory filing its chief financial officer Sanjeev Taneja has resigned with effect from August 31, 2022.
The resignation of SpiceJet CFO comes amid stinging remarks by the auditor.
“The results cast significant doubt about the company’s ability to continue as a going concern … the company’s accumulated losses (as on March 31, 2022) amount to Rs 5,912.6 crore which have resulted in complete erosion of its net worth,” the auditor said, adding that the current liabilities have exceeded current assets by Rs 6,408.7 crore as on March 31, 2022.”
The airline has delayed payment of August salaries to staff while all other Indian carriers are reverting to pre-Covid levels.
On Wednesday, two more Boeing 737s leased to SpiceJet were deregistered by the Directorate General of Civil Aviation under the provisions of Irrevocable De-registration and Export Request Authorisations (IDERA).
This requires aviation regulators to deregister aircraft within five days from the name of a third party in cases like default of lease rentals.
SpiceJet promoter Ajay Singh has for months been trying to raise funds for the carrier.
On Wednesday, the airline said it “resolved to infuse additional capital of upto $200 million.”
Ajay Singh said: “The industry has been witness to one of the most severe operating environment in the recent past … Record high ATF prices and depreciating rupee were the major contributors.
“SpiceJet has been able to sustain operation … encouraged with strong travel demand and our focus for the next year would be to induct more Boeing 737-8 MAX aircraft.”
Singh said he is optimistic about the airline’s future and its continued recovery. “In order to achieve our future plans, the board has mandated fresh capital issuance and the company will be shortly engaging with investment bankers for a potential raise of up to US $200 million.”





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