India’s Biggest Airline Reports Net Loss Of Rs 620.1 Crore In December Quarter, Revenue Down 50% Due To COVID-Impact

IndiGo Q3 Results: Interglobe Aviation Limited, which operates the country’s biggest airline IndiGo, reported its fourth consecutive quarterly loss on Thursday, January 28, as the COVID-19 pandemic kept air travel well below normal levels. The company reported a net loss of Rs 620.1 crore in the October-December quarter, as compared to a profit of Rs 490 crore registered in the year-ago period. The revenue from operations declined 50.6 per cent to Rs 4,910 crore, according to the company’s regulatory filing on the BSE. (Also Read: IndiGo Posts Record Quarterly Loss Of ₹ 1,195 Crore On Pandemic Hit )

The quarterly result was an improvement from the previous two quarters when IndiGo had reported much bigger losses as the pandemic brought a halt to global travel. The country saw stronger levels of domestic travel during the festive season in October and November, according to analysts quoted in a Reuters report. IndiGo also benefited from lower fuel costs. The airline’s fuel expenses plunged nearly 66 per cent year-over-year in the quarter.

IndiGo said that the capacity for the quarter went down by 40.8 per cent as compared to the year-ago period. The EBITDAR (earnings before interest, tax, depreciation, amortisation, and rent costs) loss stood at Rs 987.1 crore as against Rs 1,960.7 crore in the third quarter of the current financial year, registering a year-on-year decline of 49.7 per cent. The EBITDAR margin was at 20.1 per cent for the quarter, compared to 19.7 per cent for the same period last year.

Mr. Ronojoy Dutta, the company’s CEO said, “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.” 

The total expenses for the third quarter were Rs 5,765.9 crore, a decrease of 41.0 per cent over the year-ago period. IndiGo said it expected its current-quarter average seat kilometers – a measure of passenger-carrying capacity – to be around 75 per cent-80 per cent of the capacity in the year-ago period.