Indigo reports net loss of Rs.3174 crore on second wave, rising fuel costs

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Biznextindia :  Resurgence of second wave of the COVID-19 pandemic and rising fuel costs have severely affected private sector airlines Inter Globe Aviation Limited (Indigo)’s bottom-line in the April-June quarter.

The company has reported a net loss of Rs.3174 crore as against a loss of Rs.2842 crore in the same period last year.

Revenue from Operations of INR 3,006 crore for the quarter, an increase of 292.2% compared to same period last year. Negative EBITDAR of INR 1,360 crore with EBITDAR margin of negative 45.2% for the quarter, compared to negative EBITDAR of INR 1,421 crore with EBITDAR margin of negative 185.4% for the same period last year. Basic earnings per share was negative INR 82.47 for the quarter.

While the company witnessed a sharp decline in passengers, the rising input cost especially fuel cost have increased the company’s expenses drastically. While the company’s fuel cost was Rs.127 crore in the June quarter of 2020-21, it has increased by 853 percent to Rs.1215.

“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 covid wave receding, we are seeing a measured recovery in bookings for July and August. Notwithstanding the Industry’s present challenges, we remain firmly optimistic aboutIndiGo’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” CEO, Mr. Ronojoy Dutta said.

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