IndiGo net loss widens to ₹1,195 cr

Our Bureau Bengaluru | Updated on October 29, 2020

Interglobe Aviation Ltd, the country’s largest airlinewhich runs IndiGo, has posted a loss of ₹1,195 crore for the second quarter of the current fiscal compared with a loss of ₹1,062 crore in the same period last year, as the pandemic-related travel restrictions dented its operations.

A statement from the company on Thursday said its total income decreased 66.2 per cent to ₹3,029.2 crore. IndiGo said its total debt as of September stood at ₹25,419.4 crore, up 28 per cent from last year. Its total cash of ₹17,931.8 crore including free cash of ₹6,973.4 crore was lower by 4.3 per cent over a year-ago period. EBITDAR came at ₹408.5 crore, up 59.3 per cent y-o-y from ₹256.4 crore.

Gradual recovery

 The company’s CEO, Ronojoy Dutta, said: “We are pleased that we are slowly but surely stair-stepping our way back to normal capacity. While we are very much focused on managing the crisis of the present, we are also reimagining the promise of the future. Once we are back at 100 per cent capacity, we will have lower unit costs, a stronger product, a more efficient fleet and a robust network. We are impatient for the arrival of the future.” He said that the capacity cap of 60 per cent might be increased to 80 per cent by the government.

The airline, which has a fleet of 282 aircraft, said its daily cash burn has gone down to ₹25 crore from ₹30 crore for the same period. The employee cost was down nearly 39 per cent to ₹739.4 crore. The airline during an analyst call said that there is a possibility of leave without pay being reversed going forward. It also said it has received a line of credit of ₹600 crore for working capital needs from a bank but it has not been utilised so far.t.

Published on October 29, 2020

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