Uncertainty over IndiGo’s revenue forecast: CEO Ronojoy Dutta

As omicron cases continue to go up, India’s largest airline IndiGo feels the fast spreading Covid variant has casted uncertainty over their revenue forecast.
IndiGo flight (File Photo | PTI)
IndiGo flight (File Photo | PTI)

NEW DELHI: As omicron cases continue to go up, India’s largest airline IndiGo feels the fast spreading Covid variant has casted uncertainty over their revenue forecast. 

Ronojoy Dutta, chief executive officer of IndiGo, said that flight bookings have taken a hit due to the outbreak of the Omicron variant, which many health experts beleive may lead to a third wave. 

“Domestic traffic has rebounded strongly during November and December. Omicron has caused future bookings to soften somewhat but it still remain above the September levels,” Dutta said while speaking at the company’s extraordinary general meeting (EGM) on Thursday.

The EGM was called by Interglobe Aviation’s, the parent company of IndiGo, promoters — Rahul Bhatia and Rakesh Gangwal — to move a resolution to amend clauses in the company’s articles of association.

The clauses, which notes that one founder has the first right to purchase the other’s shares if the latter decides to sell, led to a bitter feud between the founders who jointly holds 74.44% stake in the airline. 
Result of the EGM voting would be uploaded within two working days. 

Dutta also said that India’s aviation industry is still showing strong signs of recovery and any fall in bookings is likely to be temporary.

He assured company’s shareholders that IndiGo will emerge stronger after facing nearly two years of uncertainty due to pandemic.

In the September-ended quarter of FY2022, IndiGo had reported a net loss of Rs 1,435.6 compared to a loss of Rs 1,194.80 crore in the corresponding quarter last year.

The company’s revenue from operations, however, in the second quarter doubled to Rs 5,608 crore, compared to Rs 2,741 crore in the same quarter last year.

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