India’s top airline to raise $534m to combat cash drain
IndiGo plans to raise as much as 40b rupees ($534m) by selling new shares after the coronavirus pandemic halted air travel across the world, ravaging the cash flow of carriers. The board of the airline, operated by InterGlobe Aviation, approved raising cash by selling shares to institutional investors, it said in a statement to stock exchanges Monday. IndiGo reported a loss of 28.5b rupees in the three months through June, compared with net income of 12.03b rupees a year earlier. The carrier had also posted a loss of 8.7b rupees in the January-March quarter this year. IndiGo is burning through 300m rupees of cash every day, despite drastically reducing flights, cutting jobs and slashing salaries, CFO Aditya Pande told analysts on a post-earnings call last month. Aircraft manufacturers including Boeing and Airbus are resetting production targets as demand for new jets vanish. IndiGo is the biggest customer of Airbus’s best-selling A320neo jets. The airline is also raising 20b rupees by selling and leasing back unencumbered assets, on top of a previous plan to raise as much as 40b rupees by measures including renegotiating contract terms with suppliers, Pande said.<br/>
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India’s top airline to raise $534m to combat cash drain
IndiGo plans to raise as much as 40b rupees ($534m) by selling new shares after the coronavirus pandemic halted air travel across the world, ravaging the cash flow of carriers. The board of the airline, operated by InterGlobe Aviation, approved raising cash by selling shares to institutional investors, it said in a statement to stock exchanges Monday. IndiGo reported a loss of 28.5b rupees in the three months through June, compared with net income of 12.03b rupees a year earlier. The carrier had also posted a loss of 8.7b rupees in the January-March quarter this year. IndiGo is burning through 300m rupees of cash every day, despite drastically reducing flights, cutting jobs and slashing salaries, CFO Aditya Pande told analysts on a post-earnings call last month. Aircraft manufacturers including Boeing and Airbus are resetting production targets as demand for new jets vanish. IndiGo is the biggest customer of Airbus’s best-selling A320neo jets. The airline is also raising 20b rupees by selling and leasing back unencumbered assets, on top of a previous plan to raise as much as 40b rupees by measures including renegotiating contract terms with suppliers, Pande said.<br/>
