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IndiGo Q4 net loss widens to ₹1,147 cr as revenue hit by second Covid wave – Mint

Domestic budget carrier Interglobe Aviation Limited on Saturday posted a consolidated year-on-year net loss of 1,147 crore in the quarter ended 31 March, 2021. The aviation company had posted a loss of 8,70.8 crore in the year-ago period.

The company’s revenue from operations fell 25% to 6,222 crore in the March quarter as against 8,299 crore in the corresponding quarter in the previous year, IndiGo said in a regulatory filing.

The country’s biggest domestic carrier loss before tax came in at 1,157 crore, compared to a loss before tax of 1,290 crore during the same period last year.

The company’s CEO, Ronojoy Dutta said “This has been a very difficult year with our revenues slumping hard due to covid, showing some signs of recovery during the period December to February and then slumping again with the second wave of the Covid.”

“While we have seen a sharp decline in revenues in March through May, we are encouraged by the modest revenue improvements starting last week of May and continuing through June. We see this pandemic as a period of great trial for both our shareholders and our employees. We are focusing all our efforts and all our energies to strengthen the foundations and the pillars of IndiGo so that we emerge from this trial significantly stronger structurally and even more customer responsive than ever before. While we have produced disappointing financial results this year, we have also positioned ourselves to be the best-in-class airline when the inevitable recovery finally arrives,” he added.

Further, the company’s fuel costs rose 67% to 1,914 crore in Q4FY21 as compared to 1,142 crore in Q3FY21.

IndiGo’s balance sheet continues to remain strong with sufficient liquidity as of 31 March 2021. “We continue to remain focused to reduce our unit costs. Stringent controls have been put in place on all discretionary spends and capital expenditures are being approved on a case-to-case basis. We are closely monitoring the current environment and will continue to take necessary actions that strengthen our cash position,” the company further stated.

As of 31 March, the company said it has 285 aircraft including 100 A320ceos, 120 A320neos, 39 A321neo and 26 ATRs as part of fleet; a net reduction of 2 aircraft during the quarter. It operated at a peak of 1,301 daily flights during the quarter including non-scheduled flights.

It also said that it provided services to 65 domestic destinations and 10 international destinations through air bubble flights.

Meanwhile, Indian airlines are expected to post a consolidated loss of USD 4.1 billion this fiscal, similar to what they are estimated to have incurred in 2020-21, taking the total losses of two years to around USD 8 billion as a result of the pandemic so far, aviation consultancy and research firm CAPA said on Thursday.

In a report, CAPA expects domestic passenger traffic to be around 80-95 million in 2021-22 as against 52.5 million in the previous financial year.

However, despite this growth, it will be well below than around 140 million passenger volumes recorded in 2019-20, CAPA said in the report.

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