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Indigo has cautioned against a weak quarter due to the impact of coronavirus, and rupee decline. The no-frills carrier has seen a decline of 15-20 per cent in daily bookings on a week-on-week basis due to coronavirus.
The carrier informed the exchanges that it has been severely hit due to the outbreak of coronavirus in January and February 2020.
IndiGo said: “We cancelled our flights to China and Hong Kong and reduced frequency to certain other Southeast Asia markets,” though the capacity was redeployed in other markets without having a material impact on its revenues.
Several Indian and international airlines have reduced their operations to and from countries that have been impacted by coronavirus.
Indigo further added that while the situation could change in the coming weeks, “...over the past few days however, week-on-week, we have seen a 15-20 per cent decline in our daily bookings. We expect our quarterly earnings to be materially impacted because of the above.”
In addition, the rupee has also depreciated sharply due to the coronavirus scare and has also impacted crude oil prices. “This will have an adverse impact on our dollar-denominated liabilities primarily on account of capitalised operating leases,” Indigo said.
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