Wednesday, July 29, 2020

IndiGo parent Interglobe posts worst quarterly loss in five years on pandemic hit

Interglobe Aviation Ltd, which runs India's largest airline IndiGo, reported the steepest quarterly loss in at least five years on Wednesday as travel restrictions due to the COVID-19 pandemic hit its operations.
A more than two-month long lockdown that started in March to curb the spread of the pandemic forced the airline to halt its operations, adding to its woes as it was already grappling with higher maintenance costs and weak demand.

The airline said it expects second-quarter average seat kilometers (ASKs) to be around 40% of its ASKs for the same quarter a year earlier.

"The aviation industry is going through a crisis of survival," Chief Executive Officer Ronojoy Dutta said in a statement.

First-quarter net loss came in at 28.49 billion rupees($381.31 million), compared with a profit of 12 billion rupees a year earlier. Analysts had forecast a loss of 22.63 billion rupees, according to Refinitiv.

Indigo, which dominates the domestic market, said total debt as of June stood at 235.52 billion rupees, up nearly 28% from a year earlier.

The company said earlier this month it will cut 10% of its workforce to save costs.
29/07/20 MarketScreener
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