The operator of India’s largest airline reported a surprise loss in the first quarter even as travel demand recovered.
The aviation sector was one of the worst-hit by the Covid-19 pandemic as first a nationwide lockdown and then local curbs to contain the spread of the virus ravaged travel.
IndiGo, after reporting net profit for the first time in two years in October-December 2021 quarter, slipped back into losses in Q4 FY22 as the emergence of the highly-transmissible Omicron variant upended a nascent recovery.
“While our financial performance in the second quarter will be challenged by weak seasonality, the long-term revenue trend remains strong,” Ronojoy Dutta, the airline’s outgoing chief executive officer, said in a statement.
Shares of IndiGo’s parent ended 1.2% higher before the results were announced compared with a 0.3% rise in the benchmark Nifty 50.
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