Pandemic-hit IndiGo reports 92% drop in first quarter revenue
Battered by the COVID-19 pandemic, IndiGo posted a net loss at Rs 2,844.3 crore for the quarter ended June 30. It had posted a net profit of Rs 1,203.1 crore in the corresponding quarter last year. The airline's revenue dropped by 92 per cent in the first quarter, which saw almost zero passenger activities in the first two months of April and May.
Revenue from operations plunged 91.9 per cent year-on-year to Rs 766.7 crore during the quarter under review. "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," said Ronojoy Dutta, CEO of the company.
"Closure of scheduled operations till May 24, 2020 and lower capacity deployment thereafter on account of COVID-19, significantly impacted the quarterly results," IndiGo said in an exchange filing.
The company's earnings before interest, taxes, depreciation, amortisation and rentals (EBITDAR) came in at negative Rs 1,421.2 crore with a negative EBITDAR margin of 185.4 per cent for the quarter, as against an EBITDAR of Rs 2,778.5 crore with an EBITDAR margin of 29.5 per cent for the year-ago period, IndiGo added.