Covid Crisis Pushes IndiGo to Even Bigger Quarterly Loss

IndiGo, one of Asia’s biggest budget airlines, reported a wider-than-anticipated loss over the weekend as passenger traffic shrank with the coronavirus tearing through India, Bloomberg News reported. The carrier, operated by InterGlobe Aviation Ltd., posted a loss of 11.5 billion rupees ($157 million) in the three months through March, its fourth quarter, widening from a loss of 8.7 billion rupees a year earlier. The average forecast from analysts was for a deficit of 4.5 billion rupees. IndiGo’s revenue performance will deteriorate in the quarter ending June compared with the March quarter, Chief Executive Officer Ronojoy Dutta said in a conference call Monday. IndiGo is expecting domestic travel to reach February levels by the third quarter of 2022, while near-term outlook for international recovery is weak and has been delayed till the fourth quarter of 2022, Dutta said. IndiGo is working on securing credit lines from lenders and entering into sales and leaseback arrangements for new aircraft, which will result in additional liquidity of 45 billion rupees for the coming year, IndiGo Chief Financial Officer Jiten Chopra said. IndiGo’s fleet count will be flat as it’s taking deliveries and returning new aircraft at the same speed, Dutta said. Read more.