Airline major SpiceJet on Wednesday reported a net loss of Rs 807.1 crore for the fourth quarter of FY20.
According to the company, the net loss includes a non-cash loss of Rs 473.4 crore due to forex loss on restatement of lease liability due to ‘Ind-AS 116’, against a profit of Rs 56.3 crore in the same quarter of the previous year.
The airline said that business was adversely impacted due to the Covid-19 pandemic and the nation-wide lockdown that resulted in suspension of flight operations.
For the complete financial year basis, the airline reported a net loss of Rs 934.8 crore that included a non-cash loss of Rs 697 crore due to forex loss on restatement of lease liability due to ‘Ind-AS 116’.
“FY2020 posed multiple unprecedented challenges such as the Covid-19 pandemic and the world-wide grounding of the Boeing 737 MAX which led to the overnight grounding of SpiceJet’s MAX fleet,” the airline said in a statement.
“On the grounded Boeing 737 MAX aircraft, the company continues to incur various costs with respect to these aircraft and during this quarter ended March 30, 2020… on account of its inability to undertake revenue operations, the company has recognised Rs 134.5 crore towards aircraft and supplemental lease rentals and other identified expenses, as ‘Other Income’ for the reported quarter.”
“This is a part recognition of the total reimbursements, on which the company is working with the aircraft manufacturer towards various ascertained costs and losses incurred by the company on this aircraft.”
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