SpiceJet CFO Resigns As Losses Widen, Stock Tumbles Nearly 15 Per Cent In Early Trade

SpiceJet CFO Resigns As Losses Widen, Stock Tumbles Nearly 15 Per Cent In Early Trade

SpiceJet Ltd said on Wednesday Chief Financial Officer Sanjeev Tanja had resigned amid widening losses and a series of mid-air incidents.

Shares of the airline tumbled nearly 15 per cent in early trade on Thursday after the company reported widening of net loss at Rs 789 crore for June quarter. The company’s stock tanked 14.65 per cent to Rs 39.60 on the BSE. Later, it recovered some of the lost ground and closed at Rs 44.95, lower by 3.13 per cent.

SpiceJet on Wednesday reported widening of net loss to Rs 789 crore in June quarter 2022-23 as high fuel prices and rupee depreciation adversely impacted the budget carrier.

The employees of the airline on Wednesday alleged delay in the disbursal of salaries for the second straight month, with the budget airline saying the payments were being made in a “graded format”.

There was a delay in disbursal of salary for staff, including flight crew, for the month of July and many are yet to get the Form 16 for the financial year 2021-22 as well, SpiceJet employees claimed.

SpiceJet aircraft have been involved in a series of incidents in the past, following which the Directorate General of Civil Aviation (DGCA) had issued a show-cause notice to the airline.

The low-cost carrier had a net loss of Rs 729 crore in the quarter ended June 2021. In the latest June quarter, the net loss is Rs 420 crore, excluding forex adjustment.

“Total revenue for the reported quarter was Rs 2,478 crore as against Rs 1,266 crore, a year-on-year growth of 126 per cent, in the same quarter of the previous year,” the airline said.

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The airline plans to raise $200 million, which is around Rs 1,600 crore at current exchange rates and expects to complete the hiving-off of its profitable cargo business into a separate company in the current quarter.

Meanwhile, a SpiceJet flight that took off for Nashik in Maharashtra from the Indira Gandhi International Airport here on Thursday morning returned midway to the city due to an ‘autopilot’ snag, a DGCA official said.