IndiGo warns of 60% capacity slump after loss on virus

IndiGo, India’s biggest airline, warned capacity will slump by 60% in the three months ending Sept. 30, , as the coronavirus pandemic continues to slam the global aviation industry. The airline, operated by InterGlobe Aviation Ltd., said “the aviation industry is going through a crisis of survival.” IndiGo had a total cash balance of 184.5b rupees as of June 30, and total debt of 235.5b rupees, it said in a statement to stock exchanges Wednesday. Indigo expects Q2 available seat kilometers to be at about 40% of year ago period. IndiGo in the process of raising an additional 20b rupees by selling-and leasing-back assets, CFO Aditya Pande said in analyst call. Employee costs for the year ending March 31, 2021 is expected to be 30% lower than pre-Covid levels, Pande said. The airline will return more older planes to lessors this year, compared with new deliveries, COO Wolfgang Prock-Schauer said in the call. IndiGo lost 28.5b rupees ($380m) in the three months through June, compared with a net profit of 12.03b rupees in the same period a year earlier. IndiGo posted a loss of 8.7b rupees in the three months through March 2020, its Q4.<br/>