Indigo posts net loss of Rs 1,062 crore

Forum Gandhi Mumbai | Updated on October 24, 2019

File photo   -  THE HINDU

Terming it as a historically weak quarter for Indigo, India's Low-Cost Carrier posted a net loss of Rs 1,062 crore for the quarter ended September 2019.   


"While our revenue performance was much better during the quarter, the losses were accentuated by forex losses on operating lease liabilities created under IND AS 116 and re-assessment of accrual estimates for future maintenance cost," Dutta added.


In the said quarter, the company had to bare total expenses worth Rs 95,716 crore which lead to an increase of 27.6 per cent on a YoY basis. Cost per Available Seat Kilometers (CASK) excluding fuel increased by 17.2 per cent in comparison to the same time last year. 


As of Q3 FY20, IndiGo had a total cash of book worth Rs 18,736 crore. Besides the restricted cash, Indigo has free case of Rs 8,706 crore. According to the airline, IndiGo is continuing to generate healthy cash. 


Post servicing of debt and lease obligations, IndiGo generated Rs 33,340 crore through its operating activities for the first half of FY20. The capitalized lease liability as of September 30 was Rs 17,464 crore. According to IndiGo, the total debt which includes the capitalized lease liability was Rs 1,98,418 crore. 


Indigo has a fleet size of 245 aircraft, during the quarter, the airline added 10 aircraft. The no-frill airline operated a “peak” of 1,476 daily flights including international operations during the quarter, yet, had made a net loss. 


According to Indigo’s statement, in a YoY basis, Indigo in the Q3 of FY 20 available seat kilometres (ASK) capacity increase is expected to be 22. Overall, ASKs is expected to be 25 per cent. 

“We remain focused on our growth plans and are expanding both domestically and internationally. We added 7 new domestic destinations and 6 new international destinations this past quarter and are looking to further grow our network profitably," Dutta added.


Published on October 24, 2019

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