IndiGo net loss increases to ₹3,174 crore in first quarter
NEW DELHI: InterGlobe Aviation, parent of the country’s largest airline IndiGo, on Tuesday reported a net loss of ₹3,174 crore for the three months to June, primarily due to 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 ₹2,844 crore in the year-ago period. The carrier’s consolidated total income increased by 177.2% to ₹3,170 crore in the first quarter of the current fiscal, it said in a statement. The total income stood at ₹1,143 crore in the first quarter of the previous financial year. The airline’s total expenses increased by 59.2% to ₹6,344 crore in Q1 of 2021-22, compared to ₹3,986 crore earlier.
The company’s chief executive officer 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.” With the second wave receding, IndiGo is seeing a measured recovery in bookings for July and August, he added. “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 ₹1,147 crore in the last quarter of 2020-21. 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.
“During the quarter, provided scheduled services to 66 domestic destinations and various international locations through passenger charters and air bubble flights,” it added.
The company’s revenue from operations, however, surged 292% year-on-year to ₹3,006.9 crore for the reported quarter. The surge in revenues was largely a result of more operational days for flight operators in the country during the quarter as against the year-ago period that was hit by national lockdown.
The civil airline company’s operations in the quarter were affected by the second wave of the pandemic as demand plummeted due to localized lockdowns and fear of transmission among customers.