IndiGo Q1 net loss widens to Rs 3,174 cr as revenue gets hit by COVID second wave

InterGlobe Aviation, parent of the country’s largest airline IndiGo, on Tuesday reported a net loss of Rs 3,174 crore for the quarter ended 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 Rs 2,844 crore in the year-ago period.

The carrier’s consolidated total income increased by 177.2 per cent to Rs 3,170 crore in the first quarter of the current fiscal, it said in a statement.

The total income stood at Rs 1,143 crore in the first quarter of the previous financial year.

The airline’s total expenses increased by 59.2 per cent to Rs 6,344 crore in Q1 of 2021-22, compared to Rs 3,986 crore earlier.

The company’s CEO 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 Rs 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.