Coronavirus takes the wind out of IndiGo – shares tumble despite a 200% jump in profits
- The shares of
IndiGofell by over 3% on Tuesday.
- IndiGo currently runs two daily flights to China, which has seen cancellations reported PTI.
airlinesparent company InterGlobe Aviationsaw a twofold jump in profits of ₹496 crore.
IndiGo currently runs two daily flights to China, which are on the receiving end of cancellations, reported PTI. The Coronavirus broke out in Wuhan, which is a big business centre in China.
The shares of IndiGo fell by over 3% to trade at ₹1448.3 on Tuesday. This is in spite of the fact that the company reported good earnings for the third quarter, a day before.
The airlines parent company InterGlobe Aviation saw a twofold jump in profits to ₹496 crore. In the same quarter the previous year, the company’ profits stood at ₹185.2 crore.
"We started operations in 7 new international routes and 17 new domestic routes and operated a peak of 1,634 daily departures during the quarter. I am very enthusiastic about the way we have been developing our network, connecting cities large and small to provide more choice to our customers," IndiGo CEO Ronojoy Dutta said.
However, IndiGo is not the only one to be facing issues as airlines across the world are offering free cancellations to trips to China.
Air India may opt for a BSNL-like voluntary retirement scheme to shed employee cost along with debt
Popular on BI
- MrBeast called out TikTok for allowing a deepfake version of him hawking $2 iPhones to run wild on the app: 'This is a serious problem'
- How an OnlyFans creator earned $60,000 from a 'marathon' livestream
- TikTok's strategy for US dominance is straight out of Amazon's playbook — but creators are the fuel for its flywheel
- Tata Motors to offload 20% stake in the upcoming Tata Technologies IPO
- Chennai's top 10 must-visit tourist attractions
- End Of Irrational Exuberance: Five reasons why markets are tanking In the middle of a bull run
- Riskometer: Your guide to choosing the right mutual fund
- Nifty, Sensex see red on weak global trends, unabated foreign fund outflows