United Kingdom
United States
Asia Pacific
IndiGo posts big quarterly loss
India’s largest airline by market share posted a net loss of INR8.7 billion (US$ 116 million) for the January-March fourth quarter.
It contrasts with a profit of $78.5 million a year ago as the Covid-19 ravages the airline industry.
The airline is not providing a forecast going forward and expects results will get much worse.
India’s two-month lockdown kicked in on March 25 when all airlines’ revenue was basically zero.
Shares were up more than 10% as results were actually better than analysts’projections.
It is in a better position to weather the crisis than most of its rivals as it has about INR204 billion in cash reserves.
Domestic flights restarted recently in India after the two-month hiatus but in IndiGo’s case it is at about 20% of normal levels.
"In times like these, we must shift our focus from profitability and growth to managing cash and liquidity," said EO Ronojoy Dutta.
Over the next few months IndiGo aims to boost liquidity further by not paying a dividend and embarking on further cost-cutting measures.
Salary costs have been cut by 5 to 25% for most staff and many have taken unpaid leave for the May-July period.
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel
Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination
Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics
Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
Craig Ray and the Expansion of the Blues Trail
Presenting Mississippi’s Cultural Trails with Katie Coats
Robert Terrell: A Journey Through BB King’s Influence
Rochelle Hicks: Celebrating Mississippi’s Musical Legacy
Exploring Jacksonville with Katie Mitura: The Flip Side of Florida
Dozens fall ill in P&O Cruises ship outbreak
Boy falls to death on cruise ship
Turkish Airlines flight in emergency landing after pilot dies
Unexpected wave rocks cruise ship
Woman dies after going overboard in English Channel