NEW DELHI: As expected, Interglobe Aviation Ltd, the parent firm that operates country’s biggest carrier Indigo, reported high losses and tepid growth in revenue for the final quarter of FY20 due to rise in expenses and suspension of flights during the last week of March.
The airline reported a consolidated net loss of Rs 871 crore for January-March period, compared with a
Rs 596 crore profit in the year-ago quarter as its total cost went up by 30 per cent during the quarter and cost per available seat-kilometre (CASK) — excluding fuel — went up by 42.1 per cent.Total revenue was up 5.3 per cent YoY to Rs 8,299 crore compared to Rs 7,883 crore last year.
Ronojoy Dutta, CEO, IndiGo said, “Our revenue was materially impacted by the shutdown of air traffic during this period. During the same period, we continued to incur committed expenditure with respect to our employees, aircraft-related costs expenditures such as lease rentals and other expenditures. This has significantly impacted our profitability.”
Like previous quarters, the pandemic hit airline this time did not speak about its future growth plans. “With the prevailing uncertainty due to Covid-19 pandemic, we are not in a position to provide this
guidance,” it added.Road ahead for IndiGo and other carriers is filled with challenges, say analysts as they believe the two listed airlines -—IndiGo and SpicetJet to report record losses in Q1 of FY21 on account of a near two month ban on passenger flight services and very slow recovery.
While IndiGo with a cash reserve a Rs 20,377 crore as of March 31 2020, is placed better to absorb the impact of the Covid-19 pandemic, other airlines too are taking severe steps to avoid bankruptcy.Wadia family promoted GoAir has also extended leave without pay for many of its employees till the month-end.