InterGlobe Aviation Q2 loss widens to Rs 1,194 cr; revenue declines 64.5%

The company's performance was better than Bloomberg estimate which had projected Rs 1600 crore adjusted net loss.
InterGlobe Aviation has deferred plans for qualified institutional placement (QIP) till December end and will look to raise debt for liquidity, the airline management said on Thursday after declaring net loss of Rs 1,194 crore in the second quarter of financial year 2021. In the same quarter last year, the firm had posted a net loss of Rs 1,062 crore.

InterGlobe Aviation, which operates the country's largest airline, IndiGo, saw its revenue decline 64.5 per cent year-on-year (YoY) to Rs 3,029 crore in the second quarter. Capacity deployed was 37 per cent lower YoY and seat occupancy fell to 65 per cent from 83 per cent in the same quarter last year. Yields, however, rose due to capacity restrictions, sequential improvement in demand, and charter operations.

The company's performance was better than Bloomberg estimate, which had projected Rs 1,600-crore adjusted net loss. 

The airline had in August announced plans to raise Rs 4,000 crore through a qualified institutional placement (QIP) but has now deferred the plans till the end of the year.

Chief Financial Officer Aditya Pande said the airline's liquidity position was stable, as it had raised over Rs 1,800 crore from asset monetisation in the last quarter. Other initiatives for liquidity infusion included renegotiation of contracts and credit line. Daily cash burn, too, reduced to Rs 25 crore from Rs 30 crore at the end of the first quarter due to addition of flights. In the next couple of quarters, the airline aims to mop up another Rs 3,000 crore of liquidity, he said.

Chief Executive Officer Ronojoy Dutta said the airline was currently operating little less than 60 per cent of its capacity and hopes the government would allow airlines to operate at 80 per cent capacity by the end of the year. Dutta added that fleet induction plan remained stable.

Dutta said the airline aimed to quickly ramp up its international flights (currently 20 per cent of last year) once the government eases restrictions, but has no immediate plans to fly long-haul routes due to route profitability concerns.

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