India’s biggest airlines, IndiGo is expecting to gain “further momentum” in air travel demand by July this year, it said on Monday. Managing cash position remains its primary focus. According to PTI, the company’s daily loss or cash burn rose to 19 crores in the March quarter and is expected to increase in the June quarter.
Chief Executive Officer of IndiGo, Ronojoy Dutta, said, “the carrier was working on securing credit line from lenders. It is also entering into sale and lease back for a new aircraft. The Airline expects the traffic level of February to be back by the third quarter of this year.”
Due to rising COVID-19 cases in India, IndiGo saw a 10% decline in passengers in March.
IndiGo CEO, Dutta, is hopeful that with the recent declining trend in COVID-19 cases with the increasing pace of vaccination, airline traffic will gain momentum by July. As PTI reported, in the first week of June, the airline saw a sharp increase in demand amid the declining COVID-19 cases.
Jiten Chopra, Chief Financial Officer of IndiGo, said on Monday that the daily cash burn of the company has increased to 19 crores in the earlier quarter and will tend to increase further in the June quarter if the current situation continues.
“In July, we are scheduling exactly at 50% of capacity. We are going to up the limit,” said the IndiGo chief on Monday.