InterGlobe Aviation Q3 Results: Loss Narrows As Travel Demand Picks Up
India’s biggest airline saw its loss narrow over the preceding three months as travel picked up after the nation began to lift lockdown restrictions.
Net loss of InterGlobe Aviation Ltd.—the parent of IndiGo—stood at Rs 626 crore in the quarter ended December compared with a loss of Rs 1,195 crore in the July-September period and a profit of Rs 490 crore a year ago, according to an exchange filing. Analyst estimates compiled by BloombergQuint had pegged the loss at Rs 437 crore.
This is the fourth straight quarter of losses for IndiGo after the coronavirus pandemic disrupted operations.
Yields, a measure of average fare per passenger per kilometre, also fell to Rs 3.70 per kilometre from Rs 3.88 a year ago.
Revenue declined 51% to Rs 4,910 crore, against the Rs 6,054-crore forecast.
Earnings before interest, tax, depreciation, amortisation, and rental costs stood at Rs 902 crore compared with Rs 1,794 crore a year ago, and the Rs 885-crore estimate.
Ebitdar margin expanded to 18.4% from 18.2%. Analysts had pegged the metric at 18.1%.
India’s airlines were among the worst hit after the nation imposed the world’s biggest lockdown to curb the coronavirus pandemic, barring local and international travel. All airlines took cost-saving measures such as pay cuts, leave without pay and layoffs to tide over the crisis. The companies resumed domestic operations from May with a cap on airfares and limited seating capacity. While the caps remain, the government raised the threshold as cases of infection lowered.
Ronojoy Dutta, chief executive officer at InterGlobe Aviation, said the airline is looking forward for gradual opening up of international scheduled flights during the next few months. “Increased capacity and aircraft utilisation are so very critical for our return to profitability,” he was quoted as saying in the statement.
Other income down 42% over the year earlier to Rs 232 crore.
Capacity down 40.8% compared to the year earlier.
Total cash balance available with the company is Rs 18,365 crore.
Load factor at 72% compared with 87.6% in the year-ago period.
Shares of Interglobe Aviation closed 0.39% lower before the results were announced, compared with a 1.07% drop in the Nifty 50.