IndiGo narrow down its losses in Q3 — passenger capacity and airfare capping continues to hamper its business
- The company reported a loss worth ₹620 crore against the profit of ₹496 crore in the same period last year.
- A troika of festive travel, low air turbine fuel prices, and strong rupee helped the airline narrow down its losses.
- The total revenue took a massive hit at ₹5,142 crore, less than half of what it was a year earlier.
AdvertisementThe third quarter ended December was a lot more gentle for Interglobe Aviation which operates India's largest private airline, IndiGo, but it was still a loss.
The company reported a loss of ₹620 crore against the profit of ₹496 crore in the same period last year. The loss may look worrisome; it is still better than what IndiGo reported in the first and second quarter — the losses in 'grounded quarter' snapped profits of the last three years.
|IndiGo||Q3 Growth (YoY)|
A troika of festive travel, low air turbine fuel prices, and strong rupee helped the airline narrow down its losses. However, its total revenue took a massive hit. At ₹5,142 crore, it was half of what it was a year earlier. Capping of airfares and tighter travel restrictions due to the COVID-19 pandemic dented earnings.
The airline's load factor at the end of Q3FY21 stood at 72%, down from around 88% in the previous year quarter.
IndiGo's CEO Ronojoy Dutta said, "We look forward to a gradual opening up of international scheduled flights during the next few months because increased capacity and aircraft utilization are so very critical for our return to profitability."
The pessimism and stigma around air travel continued to hamper the aviation industry's business. Indigo airlines carried nearly 40.8% fewer passengers compared to what it carried last year.
Meanwhile, IndiGo shares have also gained over 27% since September 30. However, the stock ended flat ahead of the earnings, when the benchmark index, Sensex, plunged over 500 points.
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