BUSINESS India's IndiGo airline reports fifth consecutive quarterly loss

BUSINESS

India's IndiGo airline reports fifth consecutive quarterly loss

CGTN

08:22, June 07, 2021

An aircraft operated by IndiGo, a unit of InterGlobe Aviation Ltd., stands at Terminal 3 of Indira Gandhi International Airport in New Delhi, India. (Photo: Getty)

Interglobe Aviation Ltd, the company which operates India's largest airline IndiGo, on Saturday reported a net loss of 11.47 billion Indian rupees ($157.43 million) in the three months ended March 31, up from a loss of 8.71 billion rupees a year before.

This was the airline's fifth straight quarterly loss as the COVID-19 pandemic kept air travel significantly below normal levels.

"This has been a very difficult year with our revenues slumping hard due to COVID, showing some signs of recovery during the period December to February and then slumping again with the second wave of the COVID," IndiGo CEO Ronojoy Dutta said in a statement.

Dutta noted that the COVID-19 pandemic was a period of great trial for IndiGo shareholders and staff. He added that the carrier was boosting its core to come out stronger when the sector recovers from the existing situation.

India's aviation sector is suffering from losses with air travel suspended for several weeks in 2020. The country's airlines are expected to lose a total of $4 billion this fiscal year, according to estimates by aviation consultancy CAPA - similar to their losses last fiscal year through to March 31.

However, just as air travel in India was starting to recover earlier this year, a second deadlier wave of the pandemic hit the nation, killing hundreds of thousands of people.

Most Indian states were under lockdown in April and May, and the government has restricted airlines to fly only 50 percent of their total capacity.

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