COVID-19: IndiGo says quarterly earnings to be impacted due to fall in bookings
Business & Economy

COVID-19: IndiGo says quarterly earnings to be impacted due to fall in bookings

NetIndian News Network

New Delhi, March 12, 2020

Low-cost carrier IndiGo today said that it expected its quarterly earnings to be materially impacted because of a 15-20 per cent fall in daily bookings due to the coronavirus outbreak.

In January and February 2020, IndiGo experienced modest impact from the coronavirus. We cancelled our flights to China and Hong Kong and reduced frequency to certain other South-east Asia markets. This capacity was redeployed in other markets without having a material impact on our revenues.

"Over the past few days however, week-on-week, we have seen a 15-20% decline in our daily bookings. Please note that the numbers could change from here based on how the situation evolves," a press release from the airline said.

"We expect our quarterly earnings to be materially impacted because of the above.

"In addition, the rupee has also depreciated sharply which will have an adverse impact on our dollar denominated liabilities primarily on account of capitalized operating leases," the release added.

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