Indian low-cost carrier SpiceJet reduced quarterly loss by two-thirds to $34 million in FY 2021 and is going for investments.

Despite the continuing pandemic, the airline managed to significantly decrease its losses in early 2021, and  improve both the passenger load factor and revenue per available seat kilometer. According to SpiceJet, it is the best in the country by both of those parameters.

The lion share of the financial improvement is generated by increased cargo revenue, which soared more than five times through FY 2021 and provided a profit of $17.6 million (Rs 130.90 crore).

Better financial situation prompted the carrier to begin a fundraising campaign.

“To ensure our long term growth and sustainable operation we have decided to raise funds of up to Rs25 billion,” SpiceJet managing director and chairman Ajay Singh is quoted by FlightGlobal. 

The air carrier’s loss in Q4 FY 2020 was almost $110 million (Rs 816.25 crore), a result of the devastating impact of the COVID-19 pandemic. The company’s financial year ends in March, which – in 2020 – marked the beginning of the crisis.

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SpiceJet reportedly informed its ground staff, commercial staff, pilots, and cabin crew about plans to defer up to 35% of May salaries.