The country’s largest airline IndiGo reported consolidated net loss of Rs 1,147 crore for the March quarter (Q4FY21) on Saturday. Due to higher fuel costs and the outbreak of coronavirus, the earnings got affected. It had reported a net loss of Rs 871 crore during the same quarter a year earlier (Q4FY20) and Rs 620 crore loss in the previous quarter (Q3FY21).
After facing disappointing operations last year, the gradual recovery seen in domestic passenger demand again declined from early March with the onslaught of second wave of coronavirus.
Budget carrier airline’s revenue from operations fell 25 per cent to Rs 6,223 crore as compared to Rs 8,299 crore in the corresponding quarter of the last year.
Its loss before tax stood at Rs 1,157 crore, compared to Rs 1,290 crore reported during the same period last year.
However, after witnessing a sharp decline in revenues in March through May, Indigo is encouraged by the modest revenue improvements starting last week of May and continuing through June. The pandemic has been a period of great trial for both its shareholders as well as employees.
The focus of the airline shall be putting all the efforts and energies to strengthen the foundations and the pillars so that can it emerge from this trial significantly stronger structurally and even more customer responsive than ever before. Though the financial results this year are disappointing, Indigo has positioned itself to be the best-in-class airline when the inevitable recovery finally arrives.
The earnings before interest, tax, depreciation, amortization and rent (EBITDAR), meanwhile stand at Rs 648 crore with EBITDAR margin of 10.4%.
IndiGo’s fuel costs rose 67 per cent to Rs 1,914 crore during Q4FY21 as compared to Rs 1,142 crore in the preceding quarter (Q3FY21)
Passenger ticket revenues stood at Rs 4,974 crore, a decrease of 30.2 per cent and ancillary revenues were Rs 890 crore, a decline of 17.2 per cent compared to the same period last year, for the March quarter.
For the full year ending March 31, 2021, Indigo marked a loss of Rs 5,806 crore as against a loss of Rs 233 crore in the previous year. The company reported a revenue of Rs 14,640 crore during FY21, a fall of 59.1 per cent compared to the last year.
While looking at the operating level, the company’s load factor at the end of March quarter stood at 70.2 per cent, down from 82.9 per cent as compared to Q4FY20. Its Available Seat Kilometer (ASK) declined 16.7 per cent year-on-year to 19.2 billion from 23 billion last year.
The airline operated at a peak of 1,301 daily flights during the quarter including non-scheduled flights, providing services to 65 domestic destinations and 10 international destinations through air bubble flights.
IndiGo has a fleet of 285 aircraft including 100 A320ceos, 120 A320neos, 39 A321neo and 26 ATRs, as of March 31,2021, with a net reduction of 2 aircraft during the quarter.
The company said it has a strong balance sheet with a total cash of Rs 18,568 crore at the end of March quarter.
On Friday, IndiGo’s scrip closed 0.43 per cent lower at Rs 1,757 on NSE.
Smrutirekha Bhoi