Indigo Q2 result update!

Last updated: 29 Oct, 2020 | 01:09 pm

Indigo Q2 result update!
  • 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.'

Finzoom Investment Advisors Private Limited (Brand Name - INDmoney, INDwealth,,, makes no warranties or representations, express or implied, on products and services offered through the platform. It accepts no liability for any damages or losses, however, caused in connection with the use of, or on the reliance of its advisory or related services.

Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. Performance and returns of any investment portfolio can neither be predicted nor guaranteed.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Marketing and distribution of various financial products such as loans and deposits are powered by Finzoomers Services Private Limited.

INDmoney, INDwealth, are brand and product of Finzoom Investment Advisors (P) Limited.

© Finzoom Investment Advisors Private Limited

[SEBI RIA Registration No: INA100012190] [Type of Registration: Non-Individual] [Validity of registration: December 17, 2018-Perpetual] [Address: 616, 6th Floor, Suncity Success Tower, Golf Course Extension Road, Sector – 65, Gurugram, Haryana- 122005] [Principal Officer details: Mr. Gaurav Sharma, Email id:, Contact No. 8800826254] [Corresponding SEBI local office address: Securities and Exchange Board of India, Local Office, First Floor, SCO 127-128, Sector 17C, Chandigarh-160017]

[ARN - 151913] [Platform Partner : BSE (Member code-24801)] [CIN - U67190HR2018PTC073294] [GST No : 06AADCF3538Q1Z8]