Indian low-cost carrier IndiGo plunged deeper into the red in its latest quarterly financial results, amid a collapse in revenue from the coronavirus outbreak.
For the quarter ended 30 June, IndiGo reported an operating loss of Rs28.4 billion ($380 million), reversing the INR15.1 billion profited it made last year.
The carrier attributed a closure of scheduled operations from mid-April to mid-May — as part of nationwide lockdown measures to stem the spread of the coronavirus — as part of reasons for the weaker showing.
While expenses for the period fell nearly 52% to Rs39.9 billion, it was outpaced by a significant decrease in revenue from operations, which tumbled 91.9% year on year to Rs7.67 billion.
IndiGo reported a net loss of Rs28.4 billion for the period. This was in contrast to the Rs12 billion net profit it posted the same period last year.
Passenger traffic statistics for the period also saw dramatic declines. Capacity, measured in ASKs, fell nearly 91%, while RPKs sank 93.8% year on year. Passenger load factor declined 27.6 percentage points to 61.3%.
The company ended the quarter with 274 aircraft, an increase of 12 aircraft from the start.
IndiGo chief Ronojoy Dutta says the carrier’s “number one priority” now is its cash balance, and it will double down on efforts to conserve cash.
IndiGo adds in its outlook that it expects its second-quarter capacity to be about 40% that of the same period last year.
The carrier’s financial results come more than a week after it made “painful measure” to cut 10% of its workforce, on the back of a pandemic-induced downturn.
IndiGo said it was “impossible…to fly through this economic storm without making some sacrifices”, adding that cost cutting was insufficient to prevent a companywide contraction.