Highlights of the Concall

• The Company witnessed a significant drop in travel demand due to the second wave of the Covid-19. This coupled with the fact that the average fuel prices went up by roughly 26% quarter over quarter impacted results severely. As a result, for the quarter ended March 21, Company posted net loss of Rs 1,147.16 crore on 25% drop in total income from operation to Rs 6,222.95 crore. Operating margin (OPM) improved to 8.9% as against contraction of 1.6% corresponding previous quarter. Thus, the company registered profit (OP) of Rs 551.50 crore in Q4FY21 as against Operating loss (OL) of Rs 131.03 crore in Q4FY20. For the full fiscal year 2021, Company reported a net loss of Rs 5,806.43 crore.

• The Company passenger ticket revenues were Rs 4,974.10 crore for Q4FY21, a decrease of 30.2% and ancillary revenues were Rs 890.70 crore, a reduction of 17.2 % compared to the same period last year. RASK was down 10.6% to Rs 3.26 while yield fell by 1.2% to Rs 3.70 per KM. Total expenses decreased by 24.2% to Rs 7,519.30 crore. CASK excluding fuel was down 3.3% to Rs 2.87.

• During Q4FY21, the Company continued to increase capacity deployment in Tier 2 and Tier 3 markets to further strengthen regional presence. Company announced operations to 7 new airports during the quarter. On the international front, during the quarter Company operated air bubble flights to 10 cities mostly in the middle east as-well as charter operations to various destinations. Company international capacity deployment increased by 36% compared to the December quarter. Overall, Company international capacity in the fourth quarter was at around 30% of pre-covid international capacity.

• For the fiscal year 2021, cargo revenue increased by 9.6% compared to the previous year. This has supported during these difficult times when passenger services have been severely impacted. Building on the success of the CarGo business have initiated a freighter programme and are in the process of sourcing 4 A321CEO aircraft.

• The Company expects that with the reducing trend in covid cases and the increased pace of vaccination, passenger confidence and airline traffic will gain further momentum by early July 2021. The near-term outlook for International continues to be bleak, and a meaningful recovery of International traffic will probably be pushed to the fourth quarter of FY22.

• The Company expects to report deterioration in revenue performance for the quarter ending June'21 as compared to March'21, given the weakness in revenue in April and May. The Company expects to see a steadily improving revenue trends for the rest of the year, provided of course the anticipated third covid wave is relatively flat.

• As of 31st March 2021, , the Company had fleet of 285 aircraft including 100 A320 CEOs, 120 A320 NEOs, 39 A321 NEOs and 26 ATRs; a net reduction of 2 aircraft during the quarter. Operated at a peak of 1,301 daily flights including non-scheduled flight during the quarter. Provided service to 65 domestic destinations and 10 international destinations through Air bubble flights.

• As of 31st March 2021, the Company had a total cash balance of Rs 18,568.50 crore comprising of Rs 7,099.70 crore of free cash and Rs 11,468.80 crore of restricted cash. The capitalized operating lease liability was Rs 25,735.70 crore. The total debt (including the capitalized operating lease liability) was Rs 29,859.70 crore.