IndiGo Q3 results: Airline reports net loss of Rs 620 cr; cash reserves decline to Rs 18,365 crore

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IndiGo Q3 results: Airline reports net loss of Rs 620 cr; cash reserves decline to Rs 18,365 crore


IndiGo today said that the airline has incurred losses of Rs 620 crore during the third quarter of the current fiscal, as COVID continued to impact travel and revenues of airlines forcing them to cut capacity. The airline had made profit of Rs 496 crore during the same quarter last fiscal.

The airline said that it operated 40.8% less seats during the quarter as compared to the same period last year.

Lower capacity impacted revenues of the airline, which fell by about 50.2% but expenses decreased by 41%.

Total income for the quarter ended December 2020 was Rs 5142 crore, a decrease of 50.2% over the same period last year. For the quarter, our passenger ticket revenues were Rs 4,069 crore, a decrease of 53.6% and ancillary revenues were Rs 807 crore, a reduction of 22.1% compared to the same period last year, the airline said.

Total expenses for the quarter ended December 2020 were Rs 5765 crore, a decrease of 41.0% over the same quarter last year, it added.

The airline said that they are heartened with their return to normalcy and feels revival would be faster once international operations resume.

“The high level of consumer confidence in our product has indeed been heartening and we are glad to be making graduated and measured steps to a full recovery. We look forward to a gradual opening up of international scheduled flights during the next few months because increased capacity and aircraft utilization are so very critical for our return to profitability. We had promised to come out of the crisis stronger than we went in and with the full commitment of all our employees, we are beginning to deliver on that promise,” Ronojoy Dutta, CEO, IndiGo, was quoted in the release.

The impact of COVID has also started to show on the cash reserves of country’s largest airline by market share. IndiGo’s cash reserves have decline from Rs 20,068 crore by the end of December 2019 to Rs 18,365 crore by the end of December 2020.





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