IndiGo: Financial headwinds make aviation leader’s flight falter | WeForNews

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New Delhi, July 23: The Covid-19 pandemic has hit the aviation sector hard, and IndiGo, the country’s leading private carrier, has not been spared from the financial crisis.

For the quarter ended March 2022, which was impacted by the ‘Omicron’ wave, Indigo declared a net loss of Rs 16,818 million.

IndiGo, with a fleet of over 280 aircraft, is the leader in the Indian aviation sector. With an occupancy rate of 78.5%, the airline recorded a market share of 56.9% in June.

However, many IndiGo flights reported delays in the last week of June, reportedly due to a labor shortage as a significant number of cabin crew went on sick leave. .

In this regard, the Directorate General of Civil Aviation (DGAC) has asked the air authorities for explanations.

Additionally, last week the airline reported two incidents of technical issues on July 14 and July 17 when flights had to be diverted.

Aviation consultant and former Vayudoot chief Harsh Vardhan said many airlines have resorted to cost-cutting and retreat.

“The planes were inactive. Today, after a sudden increase in demand, a large number of planes have been deployed while many airlines have not recruited enough manpower to cope with the pressure. New employees are present in many places, but they must be synchronized with the system and require reorientation,” he said.

When asked if the entry of new players, including Akasa Air and Jet Airways, had led to labor shortages, an IndiGo spokesman said India continued to be l one of the largest civil aviation markets in the world, as it increased its capabilities and infrastructure. and services.

“In India, currently, only 7% of the 1.3 billion inhabitants travel by plane. There is huge potential to deepen air transport penetration by improving accessibility and providing affordable fares. And that’s our focus right now.

“We will continue to expand our domestic and international network and stay true to our promise of affordable fares, hassle-free service and on-time performance across an extensive network, to catalyze the transition from rail to air travel,” the carrier said. word. .

“As a responsible employer, IndiGo is in constant dialogue with its employees to address any concerns and this is an ongoing activity. So far, our operations continue to be normal, while we add several new destinations to our network and we look forward to welcoming customers from across India and the world,” the airline said.

For the quarter ended March 2022, which was hit by the Omicron wave, IndiGo recorded a net loss of Rs 16,818 million, excluding foreign exchange loss of Rs 6,123 million, while the net loss for the quarter was raised to Rs 10,695 million.

For the fiscal year ending March 2022, which was impacted first by the Delta variant and then by the Omicron variant, IndiGo recorded a net loss of Rs 61,618 million.

In fiscal 2022, Indigo reported an increase in passenger numbers of 62.3% over the prior fiscal year. It also recorded strong revenue growth with operating revenue of Rs 259,309 million, an increase of 77.1% over the previous year.

For the quarter ended March 2022, Indigo’s passenger ticket revenue was Rs 68,847 million, an increase of 38.4%, while its ancillary revenue was Rs 10,583 million, an increase of 18.8% compared to the same period last year.

IndiGo operated a peak of 1,577 daily flights during the quarter, including non-scheduled flights. The airline provided scheduled services to 73 domestic destinations and 15 international destinations during the quarter.

“IndiGo is best positioned to maximize revenue in a recovering market. As we strive to return the airline to profitability, we are focused on maintaining our cost leadership position and continuing to build the most efficient network in the region,” the airline said. Aerial.

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