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Mumbai: IndiGo plummeted to a record loss in April-June 2020 from a record quarterly profit last year, as the Covid19 pandemic continued to batter its business, like its peers in India and the world.
All Indian carriers operated flights for less than half of the quarter as operations were allowed to start from May 25 after being suspended since the last week of March to prevent the spread of the pandemic.
India’s biggest carrier by market share posted a loss of Rs 2,844 crore for the first quarter of FY20 compared to a net profit of Rs 1,203 crore in the corresponding quarter last year.
Revenue for the quarter fell 92% to Rs 767 crore. Other income rose 2.8% to Rs 377 crore primarily backed by its investments from its cash reserves.
To be sure, costs too dropped because of curtailed operations. Fuel cost, the biggest operating cost component fell 96% to Rs 127 crore. Salary costs fell 15% to Rs 944 crore as many employees were sent on leave without pay and senior management took pay cuts since May. But a rise in finance, depreciation and amortisation costs and a foreign exchange loss pushed the carrier’s numbers down. Cost per available seat kilometre, a matrix of calculating per seat expense, rose 412%. The same matrix excluding fuel soared 711%. The corresponding revenue per available seat kilometre rose just 2.2%.
IndiGo’s capacity in terms of available seat kilometres fell 91% but even on a reduced capacity, it managed to fill just about 61% of its flights on average, down from 89% the same period last year.
The airline’s cash balance, which its CEO Ronojoy Dutta called its “number one priority” was at Rs 18,450 crore, down 10% from Rs 20,377 crore at the end of March 2020. Total debt including capitalized operating lease liability, now counted as a balance sheet item, was Rs 23,552 crore compared to Rs 22,719 crore as of end March.
All Indian carriers operated flights for less than half of the quarter as operations were allowed to start from May 25 after being suspended since the last week of March to prevent the spread of the pandemic.
India’s biggest carrier by market share posted a loss of Rs 2,844 crore for the first quarter of FY20 compared to a net profit of Rs 1,203 crore in the corresponding quarter last year.
Revenue for the quarter fell 92% to Rs 767 crore. Other income rose 2.8% to Rs 377 crore primarily backed by its investments from its cash reserves.
To be sure, costs too dropped because of curtailed operations. Fuel cost, the biggest operating cost component fell 96% to Rs 127 crore. Salary costs fell 15% to Rs 944 crore as many employees were sent on leave without pay and senior management took pay cuts since May. But a rise in finance, depreciation and amortisation costs and a foreign exchange loss pushed the carrier’s numbers down. Cost per available seat kilometre, a matrix of calculating per seat expense, rose 412%. The same matrix excluding fuel soared 711%. The corresponding revenue per available seat kilometre rose just 2.2%.
IndiGo’s capacity in terms of available seat kilometres fell 91% but even on a reduced capacity, it managed to fill just about 61% of its flights on average, down from 89% the same period last year.
The airline’s cash balance, which its CEO Ronojoy Dutta called its “number one priority” was at Rs 18,450 crore, down 10% from Rs 20,377 crore at the end of March 2020. Total debt including capitalized operating lease liability, now counted as a balance sheet item, was Rs 23,552 crore compared to Rs 22,719 crore as of end March.