Interglobe Aviation Limited, parent company of low-cost carrier Indigo, on Thursday reported net loss for the fourth straight quarter, albeit lower than previous two quarters, due to limited capacity utilisation amid travel restrictions imposed in wake of the coronavirus pandemic.
IndiGo Capacity was down 40.8%
The airline posted a net loss of Rs. 620.1 crore for the October-December quarter as against a net profit of Rs. 496 crore in the same period last year. The capacity for the quarter was down by 40.8 per cent compared to the same period last year.
- Capacity for the quarter down by 40.8% compared to the same period last year
- Revenue from Operations of INR 49,100 million for the quarter, a decrease of 50.6% compared to same period last year
- EBITDAR of Rs. 9,871 million with EBITDAR margin of 20.1% for the quarter, compared to EBITDAR of Rs. 19,607 million with EBITDAR margin of 19.7% for the same period last year
- Loss before tax of Rs. 6,231 million, compared to profit before tax of Rs. 5,565 million for the same period last year
- Basic earnings per share was negative Rs. 16.11 for the quarter
- Strong balance sheet with a total cash of Rs. 183,653 million including free cash of Rs. 74,445 million
IndiGo operated 1,500 cargo flights in the October-December 20 quarter. On the passenger flights front IndiGo operated at 70% of domestic capacity and 28% of international capacity operations in the quarter.
The airline had recorded its sharpest quarterly loss in at least five years at Rs 2,844 crore in the June quarter of this fiscal as coronavirus-related restrictions hit its operations badly. The loss narrowed to Rs 1,195 crore in September quarter with ease in travel restrictions.
IndiGo Revenue Halves
The carrier’s total revenue halved to Rs. 5,142.8 crore in Q3 FY21 from Rs 10,330.2 crore in the corresponding quarter last year, Indigo said in a filing to the BSE. Passenger ticket revenues were at Rs. 4,069.30 crore, down 53.6 per cent YoY, while ancillary revenues dropped by 22.1 per cent to Rs. 807.8 crore as compared to the same period last year.
Total expenses for the quarter ended December 2020 were Rs. 5,765.9 crore, a decrease of 41 per cent over the same quarter last year.
EBITDAR (Earnings before Interest, Tax, Depreciation, Amortisation, and Rent Costs) loss stood at Rs. 987.1 crore as against Rs. 1,960.7 crore in Q3 FY20, registering a year-on-year decline of 49.7 per cent. EBITDAR margin stood at 20.1 per cent for the quarter, compared to 19.7 per cent for the same period last year.
IndiGo CEO Ronojoy Dutta commenting on Q3 earnings, said: “We are looking forward to a gradual opening up of international scheduled flights during the next few months because increased capacity and aircraft utilisation are so very critical for our return to profitability. We had promised to come out of the crisis stronger than we went in and with the full commitment of all our employees, we are beginning to deliver on that promise.”
Total income for the quarter ended December 2020 was Rs. 51,428 million, a decrease of 50.2% over the same period last year. For the quarter, our passenger ticket revenues were INR 40,693 million, a decrease of 53.6% and ancillary revenues were Rs. 8,078 million, a reduction of 22.1% compared to the same period last year.
Total expenses for the quarter ended December 2020 were Rs. 57,659 million, a decrease of 41.0% over the same quarter last year.
Cash and Debt
- IndiGo had a total cash balance of Rs. 1,83,653 million comprising Rs. 74,445 million of free cash and Rs. 1,09,207 million of restricted cash.
- The capitalized operating lease liability was Rs. 245,579 million. The total debt (including the capitalized operating lease liability) was Rs. 277,261 million.
Network and Fleet
- Operated at a peak of 1,166 daily flights during the quarter including non-scheduled flights.
- Providing services to 60 domestic destinations and 6 international destinations through air bubble flights
- Fleet of 287 aircraft including 111 A320 CEOs, 120 A320 NEOs, 30 A321 NEOs and 26 ATRs; a net increase of 5 aircraft during the quarter.