IndiGo posts big quarterly loss
India’s largest airline by market share posted a net loss of INR8.7 billion (US$ 116 million) for the January-March fourth quarter.
It contrasts with a profit of $78.5 million a year ago as the Covid-19 ravages the airline industry.
The airline is not providing a forecast going forward and expects results will get much worse.
India’s two-month lockdown kicked in on March 25 when all airlines’ revenue was basically zero.
Shares were up more than 10% as results were actually better than analysts’projections.
It is in a better position to weather the crisis than most of its rivals as it has about INR204 billion in cash reserves.
Domestic flights restarted recently in India after the two-month hiatus but in IndiGo’s case it is at about 20% of normal levels.
"In times like these, we must shift our focus from profitability and growth to managing cash and liquidity," said EO Ronojoy Dutta.
Over the next few months IndiGo aims to boost liquidity further by not paying a dividend and embarking on further cost-cutting measures.
Salary costs have been cut by 5 to 25% for most staff and many have taken unpaid leave for the May-July period.
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