IndiGo reports net loss of Rs 3,174 crore for June quarter
InterGlobe Aviation, parent of the country’s largest airline IndiGo, on Tuesday reported a net loss of Rs 3,174 crore for the quarter ended June 2021, primarily because of a sharp decline in revenues amid the second wave of the coronavirus pandemic.
The airline, which had a fleet of 277 planes at the end of June 2021, incurred a net loss of Rs 2,844 crore in the year-ago period.
The carrier’s consolidated total income increased 177.2 per cent to Rs 3,170 crore in the first quarter of the current fiscal from Rs 1,143 crore a year ago.
The airline’s total expenses increased 59.2 per cent to Rs 6,344 crore from Rs 3,986 crore in the year-ago period.
CEO Ronojoy Dutta said: “Our financial results for the first quarter were severely impacted by the second Covid wave. The number of passengers travelling declined sharply in the months of May and June. With the second wave receding, IndiGo is seeing a measured recovery in bookings for July and August.”.
“Notwithstanding the industry’s present challenges, we remain firmly optimistic about IndiGo’s future. Our entire focus during this pandemic has been to manage our cash balances, run a high- quality airline and to continue to build our capabilities and be prepared for the post Covid environment,” he stated.
The carrier had reported a net loss of Rs 1,147 crore in the last quarter of 2020-21.
The airlines said revenues from operations at Rs 3,006.9 crore, however, increased 292.2 per cent from the year-ago period due to a low base. The year-ago quarter (Q1 FY21) was also hit hard by the first wave of Covid-19 that led to a nationwide lockdown.
Passenger ticket revenues at Rs 2,297.6 crore increased by 292.5 per cent YoY and ancillary revenues at Rs 668.3 crore rose by 296 per cent compared with the same period last year.
InterGlobe Aviation has a strong balance sheet with a total cash of Rs 17,067.9 crore, including free cash of Rs 5,620.7 crore. Given the current cash position, the company continued to evaluate the timing and the size of any QIP.
The airline operated a peak of 1,262 daily flights and a minimum of 318 flights during the first quarter of FY22, including non-scheduled flights, the statement said.
“We provided scheduled services to 66 domestic destinations and various international locations through passenger charters and air bubble flights,” it added.
Capacity for the quarter was up by 433.2 percent compared to the same period last year, the airline said. With the number of infections decreasing in India, IndiGo said air traffic has started showing signs of recovery since the last week of May but the revenue environment remains uncertain.