Amidst suffering massive losses, SpiceJet’s CFO resigns

The CFO of SpiceJet Ltd resigned as their losses soared some of which is attributable to a series of mid-air incidents. The company said that the vacancy so created shall be filled by the end of September. It recorded a net loss of Rs 789 crores in the quarter ending in June. Increase in fuel prices and the decline in the value of rupees has also contributed to the disdain. In the previous two quarters, it recorded a net loss of Rs 458 Crores sand 235 Crores respectively. To make matters worse, shares of SpiceJet plunged to by 15% to a one month low of Rs. 39.6 piece on the BSE. As far as some of the crucial operational parameters are concerned, SpiceJet had the highest passenger load factor amongst all airlines in the country. Spice Jet is also exploring the option of raising funds to the tune of close to $200 million. However, some banks have raised some issues relating to furnish loans to the airline company.

The CMD of SpiceJet, Ajay Singh however sounded confident in making a recovery in the upcoming quarters and attributed the ordeal to a very severe operating environment in the recent past. He said. “We are optimistic about our future and our continued recovery and in order to achieve our future plans the board has mandated fresh capital issuance and the company will be shortly engaging with investment bankers for a potential raise up to $200 million.”