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IndiGo Q3 analyst call: Why CEO Ronojoy Dutta skipped Q4 revenue outlook

Aviation fortunes continue to sway according to news on COVID-19 and vaccine, says Ronojoy Dutta

January 28, 2021 / 07:44 PM IST
 
 
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Country's largest airline IndiGo has made a smart recovery from a COVID-19 pandemic that has probably hit the aviation sector the most. The airline narrowed its net losses in the third quarter to Rs 620 crore, from Rs 1,194 crore in the previous three months.

But the recovery has been slowed down by a 'volatile revenue market' that has swayed up and down depending on the news flow on the pandemic and vaccine rollout, Chief Executive Officer Ronojoy Dutta told analysts on January 28, after the airline announced financial results for the December quarter.

And though the industry veteran has underlined that capacity utilisation may reach 100 percent as soon as the government allows it - the present cap is 80 percent - the volatility has held him back from giving a guideline on revenue. "It is a volatile revenue market. We are unable to give revenue outlook for the near term due to the volatility," Dutta said.

"We had a period of six weeks that were strong. And then we had four weeks that were weak from December 15. The last 10 days in January have again picked up," Dutta said, indicating that news of a new COVID-19 variant in the UK had impacted bookings.