Indigo's RPK and ASK record triple-digit growth indicating improvement in demand; Airline firmly optimistic ahead

The airline's capacity for the quarter up by 433.2% compared to the same period last year.

Jul 28, 2021 03:07 IST India Infoline News Service

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Even though the bottom-line front of Interglobe Aviation (Indigo) was below estimates due to the second wave of Covid-19 that impacted travel with air heavily, however, improvement in terms of average seat kilometres (ASK) and revenue passenger kilometres (RPK) was recorded in the first quarter of June 2021 (Q1FY22). The airline's capacity also bettered in the latest quarter.

Indigo's ASK stood at Rs1,120cr up by a whopping 433.2% in Q1FY22 compared to a mere Rs210cr a year ago same period.

Further, the airline's RPK stood at Rs660cr in Q1FY22 increasing by 410.9% from Rs130cr in the corresponding period of the previous year.

Indigo's load factor, however, contracted by 2.6 points to 58.7% in Q1FY22 from 61.3% in Q1FY21.

The airline's capacity for the quarter up by 433.2% compared to the same period last year.

CEO, Ronojoy Dutta said, “Our financial results for the first quarter were severely impacted by the second covid wave. The number of passengers travelling declined sharply in the months of May and June. With the second covid wave receding, we are seeing a measured recovery in bookings for July and August. Notwithstanding the Industry’s present challenges, we remain firmly optimistic about IndiGo’s future. Our entire focus during this pandemic has been to manage our cash balances, run a high-quality airline and continue to build our capabilities and be prepared for the post covid environment.”

However, Indigo's net loss widened to Rs3,174.2cr in the quarter under review compared to a loss of Rs2,844.3cr of Q1FY21.

Notably, Indigo's revenue from Operations of Rs3,006.9cr for the quarter, an increase of 292.2% compared to the same period last year.

The airline continues to have a strong balance sheet with total cash of Rs17,067.9cr including free cash of Rs5,620.7cr. Given the current cash position, the Company continues to evaluate the timing and the size of any QIP.

Ar around 3.16 PM, Indigo was trading at Rs1667 per piece down by 2.3% on Sensex. 

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