Indian low-cost carrier SpiceJet has delayed the announcement of its financial results for the Q1 2023 and for FY 2022-2023, citing illness of the key auditor member.
The airline announced this as it was reaching the deadline laid down by SEBI (Securities and Exchange board of India) which mandates three months for any company to declare their result after the end of said financial quarter. SpiceJet issued a notice highlighting the issue.
“The Company could not hold the meeting of Audit Committee and Board Members in the past for approval of financial results for financial year ended March 31, 2023, due to ongoing medical incapacitation of a key member of its Audit Committee,” SpiceJet said in regulatory filling on 30 June 2023.
Delay of financial statement
This is not the first time SpiceJet has delayed announcing its financial result. Last year SpiceJet had announced both Q1 of FY 2022 & Q2 of FY 2022 together in the month of September, citing attempted “Ransomware attack” as the reason.
The airline said that this attempt had disrupted their operations in the month of May,2022. The low-cost carrier has been reporting losses for the last few financial years and this year things doesn’t seem to be going its way.
It has reported a loss of ₹302 crore in FY2019, ₹937 crore loss in FY2020, ₹1,030 crore loss in FY2021 and ₹1,744 crore loss in FY2022.
With lessors requesting to de-register their aircraft, and the subsequent reduction in its services; SpiceJet has been through all of it.
Getting grounded aircraft back into service
The airline announced previously that it will be utilizing the grant offered by the government of India to get its grounded aircraft back into service.
The airline seems to facing a huge shortage in either aircraft or cash, such that they have suspended operations on one of the busiest routes in the country – Mumbai (BOM) to Bengaluru (BLR), and on India’s busiest route – Delhi (Del) to Mumbai (BOM).
The Indian airline is currently operating only three flights a day; in comparison with the market leader IndiGo who are flying around 19 direct flights on this sector each day, and many more connecting options.
SpiceJet is an Indian low-cost airline headquartered in Gurgaon, Haryana. It is the second largest airline in India by number of domestic passengers carried, with a market share of 5.8% as of April 2023.
The airline was founded in 2005 by Ajay Singh and Bhupendra Kansagra. It started operations in May 2005 with a fleet of four Boeing 737-700 aircraft.
SpiceJet has since grown its fleet to over 100 aircraft, including Boeing 737-800s, Boeing 737 MAX 8s, and Airbus A320neos.
SpiceJet operates a network of over 600 flights to 64 destinations, including 54 Indian and 15 international destinations. The airline’s main hubs are Delhi Indira Gandhi International Airport and Hyderabad Rajiv Gandhi International Airport.