India's biggest airline IndiGo that runs a fleet of 277 aircrafts, a mix of Airbus A320 family and ATR 72 family jets, has reported the First Quarter net loss of ₹3,174.2 crore ($426.84 million) despite a formidable revenue of ₹3,006.9 crore ($403.9 million).
However, industry experts had expectations at a lower end, as they analysed and forecasted the company run by 'Interglobe Aviation Ltd' to report a net loss of ₹2,301.7 ($309.1 million) crore for the said quarter, ending on June 30th.
IndiGo has continuously reported losses for last six quarters, since the pandemic battered the air travel globally. Just as the airline was showing some signs of recovery, the second Covid-19 wave renewed it's wrath, depleting passenger levels in Indian Airports.
The only Positive outcome of the Quarter is, the LCC witnessed a Revenue swell of 290% to ₹3,006.9 crore , year-on-year basis. During the same period in 2020, Indigo's operations came to a halt as the South asian country went under a lockdown to curb the spread of coronavirus infections.
'Economic times' sources say, Though Indigo could manage a swell in revenues due to its robust Network, Company's expenses are ever increasing , to a 59 per cent year-on-year escalation in the total expenses to Rs 6,344 crore for the said quarter.
Not only the Second Covid-19 wave, but also Global Crude oil prices are playing an equal role to trim Company's profit margins as balance sheet indicates free cash decline of 25 per cent on-year and total debt soared nearly 35 per cent.
The airline’s loss before interest, tax, depreciation, amortization and rent costs narrowed on-year to Rs 1,360.2 crore in the quarter from Rs 1,421.2 crore. Operating margins also saw an improvement to negative 45.2 per cent from negative 185.4 per cent a year-ago.
Earlier, Indigo's Chief Executive Officer (CEO) Ronojoy Dutta had told CNBC-TV18 that ,
"We are fit & in great form, ready for the future. Middle of May was the worst period for us, believe that the worst is behind us now,"
"while seat fares have been slowly rising, the passenger load factor of airlines is still quite low, but is expected to recover soon."
"IndiGo is also looking to phase out the older inefficient aircraft, bringing in Neos & the A-321 planes, which are much more efficient, to drive fuel consumption. The airline's fuel consumption, which is its biggest cost item, is down 10% on year"
Pictures : Abhidut sahani
