InvestorQ : Why did the losses of Interglobe again widen in Jun-21 quarter?
Arti Chavan made post

Why did the losses of Interglobe again widen in Jun-21 quarter?

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Rutuja Nigam answered.
5 months ago
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Interglobe Aviation, the company that runs India’s largest airlines Indigo, reported net loss for the Jun-21 widening to Rs.3,174 crore. The bottom line of Indigo was hit by a combination of three major factors viz. tepid air traffic, higher crude prices and a sustained depreciation of the Indian rupee. Airline companies have huge dollar pay-outs for international lease rentals and weak rupee really hits them hard.

In the Mar-21 sequential quarter, Interglobe had posted a much lower net loss of just Rs.1,160 crore. However, the variant of COVID 2.0 led to a sharp drop in air traffic thus impacting revenues severely. Even the top line revenues were lower by -51.6% at Rs.3,007 crore, which is a challenge for absorbing fixed costs. For Jun-21 quarter, fuel costs were up by 67.3% and the total debt has spiked by a whopping 35% at Rs.31,690 crore.

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