IndiGo Q1 Net Loss Widens To ₹3,179 Cr, Revenue Hit By COVID 2nd Wave

Movement BOC IndiGo TISS - aviatorsbuzz
A file photo of Kolkata ground staff pose before IndiGo's maiden CarGo flight to Chittagong in Bangladesh. Source: IndiGo

Domestic budget carrier IndiGo on Tuesday posted a consolidated year-on-year net loss of ₹3174.17 crore in the quarter ended June 30, 2021. The aviation company had posted a loss of ₹2,844 crore in the year-ago period.

Interglobe Aviation Limited’s revenue from operations plunged 48% quarter-on-quarter (QoQ) to ₹3,0007 crore in Q1FY22 as against ₹6,223 crore in Q4FY21.

The second wave of Covid-19 significantly impacted revenue for the quarter. IndiGo reported a net loss of INR 31,742 million and negative EBITDAR of INR 13,602 million for the quarter ended June 2021.

However, on year-on-year basis, the carrier’s revenues zoomed 292% as against ₹767 crore in the corresponding quarter in the previous year, IndiGo said in a regulatory filing.

It also saw a 59% rise in total expenses in the quarter to ₹6,344 crore.

The Company’s CEO, Mr. Ronojoy Dutta said, “Our financial results for the first quarter were severely impacted by the second covid wave. The number of passengers traveling declined sharply in the months of May and June.”

Mr. Dutta added that with the second COVID wave receding, the airline saw 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 highquality airline and to continue to build our capabilities and be prepared for the post-COVID environment,” he said.

Cash and Debt (As of 30th June 2021)

  • IndiGo had a total cash balance of INR 170,679 million comprising INR 56,207 million of free cash and INR 114,472 million of restricted cash.
  • The capitalized operating lease liability was INR 259,335 million. The total debt (including the capitalized operating lease liability) was INR 316,901 million.

IndiGo Network and Fleet

  • As of 30th June 2021, fleet of 277 aircraft including 85 A320 CEOs, 122 A320 NEOs, 41 A321 NEOs and 29 ATRs; a net decrease of 8 aircraft during the quarter.
  • Operated a peak of 1,262 daily flights and a minimum of 318 flights during the quarter including non-scheduled flights.
  • During the quarter, provided scheduled services to 66 domestic destinations and various international locations through passenger charters and air bubble flights.

Operational Performance

For the period April-June’21

  • The Company had a Technical Dispatch Reliability of 99.94%.
  • The Company had an on-time performance of 98.2% at four key metros and flight cancellation rate of 2.54%.

IndiGo has reported losses ever since the pandemic brought global travel to a near-halt and battered airlines worldwide. Just as the airline showed recovery signs last year, the sector was hit by the renewed travel restrictions.

Capacity for the quarter was up by 433.2% compared to the same period last year, the airline said.

“During the current quarter, the country was under a severe impact of second wave of Covid-19. As a result, all state Governments reintroduced measures including lockdown to curtail spread of the virus. This has led to a significant drop in air traffic thereby severely impacting our revenues and profitability for the quarter,” the airline said in a statement.

“Starting last week of May’21, with decrease in number of covid cases, the air traffic has again shown signs of recovery. While there remains uncertainty in the revenue environment in the near term, with the push from Government to vaccinate as many people as possible, we expect that the traffic and the revenue environment will normalise in the medium to long term,” IndiGo’s parent company further stated.

Shares of Interglobe Aviation Limited on BSE closed 1.40% lower at ₹1,716 apiece on Tuesday.

Last month, IndiGo officially kicked off flights from Darbhanga Airport, adding its 67th domestic destination. The low-cost airline now flies directly from Darbhanga to Kolkata and Hyderabad.

IndiGo inaugurated its first flight from Darbhanga Airport on Monday, July 6. Flight 6E-6924 departed for Hyderabad at 12:45 PM local time, with several important politicians present at the event. The flight marks IndiGo’s 67th domestic destination and is a part of its ongoing plan to grow its regional presence across India.

 

Previous articleFake Job Racket At IndiGo Busted, 12 Fraudsters Nabbed By Delhi Police
Next articleRakesh Jhunjhunwala’s New Airline To Have 70 Aircraft In Four Years