IndiGo flies into Rs 871 cr quarterly loss on higher expenses

InterGlobe Aviation on Tuesday reported a net loss of Rs 870.8 crore in the three months ended March, as higher expenses and suspension of flight operations due to coronavirus pandemic took a toll. The parent of the country's largest airline IndiGo had a profit after tax of Rs 595.8 crore in the year-ago period.

"Closure of flight operations during national lockdown on account of COVID-19 significantly impacted revenue for the quarter," it said in a regulatory filing. Domestic flight services remained suspended for two months from March 25 when the lockdown was imposed to curb spreading of coronavirus infections. While domestic flights resumed operations on May 25, overseas flights are yet to recommence services.

During an earnings call, IndiGo CEO Ronojoy Dutta said international operations were gradually reduced starting January. Regarding future capacity growth, IndiGo said it was not in a position to provide guidance, citing "prevailing uncertainty due to pandemic".

In the three months ended March, total income increased to Rs 8,634.6 crore. The same stood at Rs 8,259.7 crore in the year-ago period. Revenue from operations rose to Rs 8,299.1 crore.

However, total expenses shot up 30 per cent to Rs 9,924.4 crore in the latest March quarter. Fuel cost rose nearly three per cent, while other expenses jumped around 46 per cent, as per the filing. Load factor, a measure of seat occupancy, declined to 82.8 per cent in the March quarter from 86 per cent in the same period a year ago.

For 2019-20 financial year, IndiGo registered a loss of Rs 233.7 crore. In the year-ago fiscal, it had a profit after tax of Rs 157.2 crore. "At IndiGo, we are determined to emerge from this crisis stronger and more energized than ever. We are positioning ourselves to be a stronger brand to have a more efficient fleet and a lower cost structure," Dutta said.

The airline had a fleet of 262 planes, including 123 A320 ceos, 100 A320 neos, 14 A321 neos and 25 ATRs at the end of March. Shares of IndiGo declined nearly 1 per cent to close at Rs 945.55 on the BSE.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)