After posting a INR8.33 billion rupee (USD102.8 million) loss for the three months to September 30, 2022, cash-strapped SpiceJet (SG, Delhi Int'l) is chasing additional capital and trying to renegotiate payment terms on some existing loans.

"On account of its operational and financial position, and the impact of the Covid-19 pandemic in earlier periods, the company has deferred payments to various parties, including lessors and other vendors and its dues to statutory authorities," read the minutes of a November 14 board meeting seen by ch-aviation.

In the six months to September 30, SpiceJet incurred net losses of INR16.13 billion (USD198.9 million). As of September 30, the airline had negative retained earnings of INR75.77 billion (USD934.6 million) and a negative net worth of INR59.5 billion (USD734.2 million).

Earlier changes to Indian accounting standards, adverse foreign exchange rates, fuel prices, pricing pressures, Covid-19, and "other business factors" were all cited as reasons for the airline's poor financial performance. With 82 aircraft (data from the ch-aviation fleets advanced module shows 34 as inactive), SpiceJet is presently ranked fourth in the Indian aviation market when measured by seat capacity. The airline trails Vistara, Air India, and the market leader, IndiGo Airlines. The anticipated integration of Vistara into Air India will likely strengthen that airline's local market share at SpiceJet's expense.

In the three months to September 30, SpiceJet raised INR6 billion (USD74 million) through India's government-administered Emergency Credit Line Guarantee Scheme ( ECLGS) scheme. The airline raised a further INR15 billion (USD185 million) in October, and discussions are underway to raise further capital.

"The Board has also approved for raising of fresh capital through the issue of eligible securities to qualified institutional buyers, in accordance with applicable law," the minutes said. "Based on the foregoing and their effect on business plans and cash flow projections, the management is of the view that the holding company will be able to achieve profitable operations and raise funds as necessary, in order to meet its liabilities as they fall due."

The minutes also acknowledge that the auditors have included a 'material uncertainty related to going concern' note when signing off the last quarter's accounts. However, the board remains of the opinion that considering the renegotiation process concerning existing loans is underway, SpiceJet remains a viable ongoing concern.