Pakistan International Airlines PK 8303 with at least 90 passengers crashes near Karachi airport: How big is an A320 Airbus?
Pakistan International Airlines PK 8303 with at least 90 passengers crashes near Karachi airport: How big is an A320 Airbus?

InterGlobe Enterprises, the parent company of India's largest airline IndiGo, on Wednesday reported a net loss of Rs 2,844 crore in the quarter ended June compared to a net profit of Rs 1,203 crore in the same period of last year.

Revenue from operations plunged 92 per cent year-on-year to Rs 767 crore on account of Covid-19 and government orders.

"The aviation industry is going through a crisis of survival and therefore, our cash balance remains our number one priority," said Chief Executive Officer Ronojoy Dutta.

"However, we also recognise that major disruptions offer companies opportunities for improvement in product, customer preference, costs and employee engagement. We have built a strong team which is working on multiple fronts to ensure that we emerge from this crisis stronger than ever." IndiGo said its total income for the quarter ended June was down 88 per cent year-on-year to Rs 1.144 crore. Passenger ticket revenues were Rs 585 crore, down 93 per cent and ancillary revenues slipped 81 per cent to Rs 169 crore.

Basic earnings per share was negative Rs 73.92 for the April to June quarter. The company said it has a strong balance sheet with a total cash of Rs 18,450 crore including free cash of Rs 7,528 crore.

The airline operated a peak of 418 daily flights including charter flights during the quarter. It resumed services to 56 domestic destinations and served 20 international destinations via charter operations.

IndiGo has a fleet of 274 aircraft including 123 A320ceos, 108 A320neos, 18 A321 neo and 25 ATRs.

SpiceJet

SpiceJet posts Rs 807 crore loss for Mar quarter, auditor says serious doubt about co''s operational viability

New Delhi: Budget carrier SpiceJet on Wednesday reported a net loss of Rs 807.1 crore for the fourth quarter ended March 2020, owing to the coronavirus-induced lockdown that led to travel restrictions.

It had posted a net profit of Rs 56.3 crore in the corresponding quarter of the previous financial year, the airline said in a statement. For the full financial year 2019-20, its net loss stood at Rs 934.8 crore as against a net loss of Rs 316.1 crore in 2018-19.

The airline in the statement also informed that its Chief Financial Officer Kiran Koteshwar has resigned and "decided to pursue an exciting opportunity overseas". He will remain with SpiceJet till August 31 and for a transition thereafter, it said.

However, its total income in January-March 2020 rose to Rs 3,057.3 crore, compared with Rs 2,571.8 crore in the year-ago period. For the full financial year 2019-20, the airline's total income also jumped to Rs 13,206 crore, against Rs 9,258 crore in 2018-19.

The company's total expenses during the quarter under review also increased to Rs 3,864.4 crore, against Rs 2,515.5 crore a year ago. In complete 2019-20, it stood at Rs 14,141 crore as compared with Rs 9,510 crore in the previous financial year.

SpiceJet Chairman and Managing Director Ajay Singh said, "Two key factors that adversely impacted our performance and bottomline (profit) were: The COVID-19 pandemic, which started affecting demand adversely from mid-February, and grounding of the 737 MAX, which has been out of service for over a year now." He added that despite the year-long grounding of the 737 MAX aircraft, SpiceJet ran a profitable operation till the COVID-19 pandemic hit demand from mid-February.

The aviation industry, both in India and globally, is going through the toughest-ever phase in its history, he said.

In a BSE filing, the airline's independent auditor S R Batliboi and Associates LLP said the airline's financial statement indicates that the "(SpiceJet) group has accumulated losses and its net worth has been fully eroded".

It also added that the group has incurred a net loss during the current and previous year and, the group's current liabilities exceeded its current assets as at the balance sheet date.

"These conditions, along with other matters... indicate the existence of a material uncertainty that may cast significant doubt about the group's ability to continue as a going concern," the auditor said.

Scheduled international passenger flights continue to remain suspended in India since March 23. However, India has signed bilateral 'air bubble' agreements with countries like the US, Germany and France that allow airlines of both the countries to operate special international charter flights.

The aviation industry has been significantly impacted due to the travel restrictions imposed in India and abroad in view of the coronavirus pandemic. Airlines in India have taken cost-cutting measures such as pay cuts, leave-without-pay and firings of employees.

India resumed domestic passenger flights from May 25 after a gap of two months. The airlines have been allowed to operate only a maximum of 45 per cent of their pre-COVID-19 domestic flights.

However, the occupancy rate in Indian domestic flights has been around just 50-60 per cent since May 25.

Jet Airways

Jet Airways, which is undergoing an insolvency resolution process, saw its loss widening to Rs 5,535.75 crore in the year ended March 2019, mainly due to surge in expenses.

The full service carrier, which shuttered operations in April last year, had a loss of Rs 766.13 crore in 2017-18. These figures are for standalone comprehensive losses.

Two resolution plans have been received for the airline and those are under evaluation.

In 2018-19, the airline's total income declined to Rs 23,314.11 crore from Rs 23,958.37 crore in the year-ago fiscal, according to a regulatory filing.

Total expenses surged to Rs 28,141.61 crore in 2018-19, mainly on account of higher fuel costs.

After stopping operations on April 18, the airline went into Corporate Insolvency Resolution Process (CIRP) in June 2019.

The financial statements have been signed by Jet Airways Resolution Professional Ashish Chhawchharia.

In a statement, that is part of the regulatory filing, Chhawchharia said he was not in a position to provide the consolidated financial results, as the subsidiaries of the company are separate legal entities, also currently non-operational and that he was facing huge difficulty in obtaining relevant data from the said subsidiaries.

The results for the year ended March 2019 were submitted to the stock exchanges past midnight on Tuesday.

All the directors, CEO, CFO and company secretary had resigned from their respective positions in the company prior to commencement of the CIRP.

"Resolution plans have been received from two resolution applicants on July 21, 2020, which are currently under evaluation. Pending outcome of the CIRP, financial statements of the company have been prepared ongoing concern basis," the filing said.

The last date for submission of resolution plans was July 21.

Shares of the airline dropped nearly 5 per cent to its lowest trading permissible limit for the day at Rs 29.10 apiece on the BSE.

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