Last updated: 29 Oct, 2020 | 01:09 pm
- Third consecutive quarterly loss : India’s largest airline by passenger and fleet size reported a consolidated net loss of ₹1,195 crore for the quarter ended September 30 as compared to a loss of ₹1,062 crore in the same period a year ago. Total revenue fell by 64.5% on a yearly basis to ₹3,029 crore however beating street’s estimate of ₹2,635.90 crore. Analysts had earlier estimated a net loss of ₹1,604.80 crore.
- Operational Metrics: Business performance remained muted due to weak demand, Available seat kilometres (ASKs), a metric used to assess capacity flown, was 8.9 billion for this quarter, down 63.3% yearly but up more than four times on a sequential basis. Load factor which essentially measures capacity utilization was down by 18.5 points whereas Revenue Passenger Km. was down by 71%.
- Network and Fleet: As of Sep 30, Indigo had a fleet of 282 aircraft, a net increase of 8 aircraft in the quarter. For the said quarter, the company operated a peak of 823 daily flights including charter as against 413 in the previous quarter.
- Cash and debt position: Indigo had a total cash balance of ₹17,932 crore comprising ₹6,973 crore of free cash. The capitalized operating lease liability was ₹22,931 crore. The total debt (including the capitalized operating lease liability) was ₹25,419 crore.
- Future Capacity Growth: Management expects Q3 fiscal 2021 ASKs(Available Seat Kilometer) to be around 60% of the Q3 fiscal 2020 ASKs.
The effects of the pandemic continue to weigh upon on the aviation sector and are not expected to fade away anytime soon. Though demand is picking up gradually, it is still far away pre COVID levels. Changes in business travel patterns, fall in tourism, etc are expected to have negative effects on the aviation sector. Also with the absence of any stimulus package by the government for the sector, the airline industry has had a rough time. However, Indigo being the sector leader and the most cost-efficient operator is expected to withstand the downturn.
The Company's CEO, Mr. 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% 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.'
