After a choked Q1, IndiGo flies in unchartered zones holding on to liquidity

Everybody knew InterGlobe Aviation Ltd that runs IndiGo would report massive losses for the June quarter owing to covid-19 lockdown and the ensuing travel restrictions. The moot question was how much?

The airline, India’s largest, reported a net loss of ₹2849 crore on revenues of nearly ₹767 crore. For what its worth in these trying times, this means the loss margin stood at a whopping negative 371%.

Encouragingly, fixed cash burn has dropped to about ₹30 crore per day in June from roughly ₹40 crore per day in March. This improvement was helped by cost cutting initiatives and cash contribution from the much smaller scale from operations. For the June quarter, IndiGo’s employee costs and supplementary rentals & maintenance cost declined by about 17% and 56%, respectively, compared to the March quarter.