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Budget carrier IndiGo's net loss for the September quarter narrowed sequentially to 1,435 crore, aided by a revival in air traffic in the festive season.

India's largest airline posted a huge loss of 3,179 crore in June quarter as the devastating second wave and resultant lockdowns meant that the entire period was a near washout in operations.

However, when compared with the previous year period (Q2FY21), the loss has widened from 1,195 crore.

“We are encouraged by the pace of revenue recovery. We continue to work towards return to profitability in order to strengthen our balance sheet. With a modern fleet, dedicated employees and a stronger economic environment we are well positioned to leverage all the growth opportunities around us," said the company’s CEO Ronojoy Dutta.

The Gurgaon-headquartered company's revenue from operations more than doubled to 5,608 crore when compared with 2,741 crore in the corresponding quarter of the last year.

The company clocked an EBITDAR (earnings before interest, tax, depreciation, amortisation and rent) of 340 crore during the quarter with a margin of 6.1%, compared to EBITDAR of 408 crore in the same period last year.

Surging crude oil prices, just when the air traffic saw a recovery, played a spoilsport for a quick recovery. Oil marketing companies (OMCs) have hiked prices of aviation turbine fuel (ATF) by about 70%-80% in the last one year, as global crude oil prices soared on energy crunch.

Fuel expenses during the quarter soared 200% to 1,989 crore when compared with last year.

With the government removing cap on capacity, domestic airlines have been able to operate at 100% of their pre-Covid levels from 18 October. This might help carriers make a faster recovery after the pandemic decimation.

Total expenses for the September quarter were 7,234 crore, an increase of 71.3% over the same quarter last year.

The company said it has a strong liquidity position with a total cash of 16,553 crore including free cash of 6,351 crore at the end of the September quarter.

On the operational front, IndiGo clocked ASK (available seat per kilometer) of 15.8 billion during the quarter, up 78.3% over last year. Meanwhile, the load factor came in at 71.1% as compared to 65.1% a year ago.

As of September 30, IndiGo's fleet comprised 279 aircraft including 72 A320 CEOs, 130 A320 NEOs, 44 A321 NEOs and 33 ATRs; a net increase of 2 aircraft during the quarter.

IndiGo operated a peak of 1,209 daily flights and a minimum of 759 flights during the quarter including non-scheduled flights.

On Thursday, ahead of the results, IndiGo shares were up 0.49% to close at 2,020 on NSE.

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