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IndiGo slumps as fall in bookings may impact quarterly earnings

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Last Updated : Mar 12 2020 | 10:50 AM IST

Interglobe Aviation were locked in a lower circuit of 10% at Rs 1039.95 after the airline said it experienced modest impact from the Coronavirus in January and February 2020.

Interglobe Aviation said that it cancelled its flights to China and Hong Kong and reduced frequency to certain other South-east Asia markets. This capacity was redeployed in other markets without having a material impact on the company's revenues. Over the past few days however, week-on-week, the airline has seen a 15-20% decline in its daily bookings.

It added that the numbers could change from here based on how the situation evolves. The company expects its quarterly earnings to be materially impacted because of the above. In addition, the rupee has also depreciated sharply which will have an adverse impact on the firm's dollar denominated liabilities primarily on account of capitalized operating leases.

Interglobe Aviation reported a consolidated net profit surged 167.86% to Rs 495.97 crore on a 25.45% jump in net sales to Rs 9,931.68 crore in Q3 December 2019 over Q3 December 2018.

Interglobe Aviation (Indigo) is among the fastest growing low cost carriers in the world.

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First Published: Mar 12 2020 | 9:33 AM IST

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