Дата: 28-07-21 13:31

IndiGo Q1 results: expensive fuel and pandemic jeopardize

Interglobe Aviation, the operator of IndiGo Airlines, has reported a higher-than-anticipated loss of INR 3,174 crore (USD 426.3 million) for the April-June quarter of 2021. In comparison, last year the airline reported a loss of INR 2,844.3 crore (USD 382.2 million) in the same quarterly period.

Although the airline's operating revenue increased by 292% year-on-year to INR 3,006.9 crore (USD 404.15 million), the surge in revenue inflow can directly be associated with increased flights operated during the recent quarter against the previous year hit by the national lockdown.

Despite the surge in revenue, the airline reported a loss of almost 59% quarterly in 2021 due to escalated total expenses worth INR 6,344 crore (USD 852.68 million).

A factor that can be included as a significant contributor to IndiGo's expenses is the skyrocketing prices of Aviation Turbine Fuel. This can be associated with soaring purchase prices of crude oil within the country. 

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The airline, currently focused on increasing passenger capacity hopes that the government abolishes restrictions on capacity limits within the aviation sector.

"Our financial results for the first quarter were severely impacted by the second covid wave. The number of passengers traveling declined sharply in the months of May and June," said Ronojoy Dutta, CEO of IndiGo Airlines, in a statement. "With the second covid wave receding, we are seeing a measured recovery in bookings for July and August."

Supplementary factors such as the Indian National Rupee diving against the dollar have further induced airline losses in foreign currency exchange for their leasing payments.

The ruthless second wave of COVID-19 cases in India damped any chances of aviation recovery within the booming sector. The demand for air travel within the country had plummeted due to regionalized lockdowns and fear of transmission among passengers.

IndiGo Airlines is one of the largest low-cost carriers in Asia. It operates a fleet of 28 ATR 72-600s, 170 Airbus A320s, and 40 Airbus A321s.

Источник информации: AeroTime

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