Revenue from operations slipped 29% year on year to Rs 1,347.52 crore in the quarter ended 30 September 2023.

The firm reported a pre-tax loss of Rs 449.43 crore in the second quarter of FY24 as against a pre-tax loss of Rs 833.23 crore recorded in Q2 FY23.

The company’s revenue from air transport services stood at Rs 1362.45 crore (down 22% YoY) and income from freighter and logistics services was at Rs 66.04 crore (down 67.97% YoY) during the period under review.

Spicject said that it has launched 13 new routes during the quarter. Passenger revenue per available seat kilometre (RASK) increased by 11% due to increase in yield by 8% & load factor by 3%.

Ajay Singh, chairman and managing director of Spicject, said, “The July-September quarter has historically been a challenging period for the aviation industry. This year, the challenges were further compounded by elevated fuel prices, impacting operational costs. SpiceJet, however, has been proactive in implementing cost-saving measures and remains focused on adapting to the dynamic market conditions.

“In the face of these challenges, SpiceJet emphasizes its commitment to operational efficiency, customer service, and strategic decision-making to navigate the complexities of the aviation landscape. The airline continues to explore avenues for growth and profitability in the evolving market and the fresh infusion of over Rs 2,250 crore in the company will bring renewed energy to adapt to the changing circumstances.”

Meanwhile, the company announced that its board has approved the raising of fresh capital of over Rs 2,250 crore through the issuance of equity shares under private placement basis, subject to shareholder and regulatory approvals as may be required.

The board approved up to 32.08 crore equity shares of Rs 10 each for issuance. It further approved up to 13 crore warrants for issuance. Warrants to be convertible into equivalent number of equity shares of Rs 10 each. The issue price is Rs 50 per share, warrant.

The proposed preferential issues comprise of investors like Elara India Opportunities Fund, Aries Opportunities Fund, Mahapatra Universal, Nexus Global Fund, Prabhudas Lilladher, Resonance Opportunities Fund and many more for issuance of equity shares and equity warrants aggregating to over Rs 2,250 crore.

The proposed fund infusion will go a long way in enhancing product presence and market reach of SpiceJet and will also provide deep financial foundation. The capital raised will be instrumental in funding operational expansion initiatives, including fleet enhancement, route network expansion, and technological advancements.

“This is a significant fund raise and it is designed to strengthen SpiceJet’s financial position, enhance operational capabilities, settle outstanding issues and position the airline again for sustained growth in the dynamic aviation sector,” Singh added.

SpiceJet is engaged in the business of providing air transport services for the carriage of passengers and cargo.

Shares of SpiceJet tumbled 4.18% to settle at Rs 58.04 on the BSE.