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IndiGo records net loss of Rs 2844 cr in Q1

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InterGlobe Aviation (IndiGo) reported a consolidated net loss of Rs 2,844.30 crore in Q1 June 2020 as against net profit of Rs 1,203.14 crore in Q1 June 2019.

The low cost carrier said that closure of scheduled operations till 24 May 2020 and lower capacity deployment thereafter on account of COVID-19 had significantly impacted the quarterly results.

Pre-tax loss in Q1 FY21 was at Rs 2,842.6 crore compared with pre-tax profit of Rs 1,509.40 crore in Q1 FY20. IndiGo saw its revenue fall 92% to Rs 766.7 crore this Q1 from Rs 9,420 crore, against a 90.9% reduction in capacity, compared to same period last year.

The airline reported a negative EBITDAR of Rs 1421.20 crore with negative EBITDAR margin of 185.4% for the June quarter as against an EBITDAR of Rs 2778.5 crore with EBITDAR margin of 29.5% recorded in the same period last year.

RASK (revenue per available seat kilometre) rose by 2.2% YoY to Rs 4.19 while the CASK (cost per available seat-kilometre) surged 412.3% to Rs 17.69 in Q1 FY21 over Q1 FY20.

The load factor has declined by 27.6 bps to 61.3% in Q1 June 2020 from 88.9% in Q1 June 2019. Passenger load factor, or load factor, measures the capacity utilization of public transport services like airlines, passenger railways, and intercity bus services. It is generally used to assess how efficiently a transport provider fills seats and generates fare revenue.

We expect Q2 fiscal 2021 ASKs (available seat kilometers) to be around 40% of our Q2 fiscal 2020 ASKs, the company said w.r.t. future capacity growth. ASK is a measure of an airplane's carrying capacity available to generate revenues.

Ronojoy Dutt, the company's CEO, said: "The aviation industry is going through a crisis of survival and therefore, our cash balance remains our number one priority. However, we also recognize that major disruptions offer companies opportunities for improvement in product, customer preference, costs and employee engagement. We have built a strong team which is working on multiple fronts to ensure that we emerge from this crisis stronger than ever."

As of 30 June 2020, lndiGo had a total cash balance of Rs 18449.8 crore comprising of Rs 7527.6 crore of free cash and Rs 10922.2 crore of restricted cash.

The capitalized operating lease liability was Rs 21,177.9 crore. The total debt (including the capitalized operating lease liability) was Rs 23551.6 crore.

InterGlobe Aviation is a low cost carrier. It had a fleet of 274 aircraft as of 30 June 2020.

Shares of IndiGo shed 0.45% to Rs 909.80 on Wednesday. It traded in the range of 899 and 922.75 during the day.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, July 29 2020. 16:28 IST