Indigo Airlines Q4 FY 2022 Research Tear Sheet

IndiGo is an Indian low-cost airline. It is headquartered in Gurgaon, Haryana India. This is a domestic airline with a 282 fleet size. It is one of the low cost carrier flying in Asia. It is the sixth largest carrier in Asia. It was incorporated in the year 2005.The founder is Rahul Bhatia and Rakesh Gangwa. The airways fly across 95 destinations. Out  of which 71 flights fly in the domestic destination and 24 flight flies in an international location. In total Indigo release 1500 daily flights per day. It has successfully achieved 300+ million happy customers. 

Financial Snapshots

(in INR million)	Q4 FY 2022	Q4 FY 2021
Total revenue	82,075	63,618
EBITDAR	1,718	6,483
Revenue from Operations	80,207	62,229
EBITDAR Margin	2.10%	10.40%

Profitability Index

The company has hit a net loss of 16.8 billion rupees. The Net loss is 10.7 billion, excluding the foreign currency loss of 6.1 billion rupees. The loss is mainly due to increase in fuel price, lower capacity due to Omicron and a lower RASK. The full year financial performance is affected by Delta and Omicron effect. However, Indigo has successfully served 50 million passengers in FY2022. For FY2022, IndiGo reported a net loss of INR 61,618 million. However, aggregated net loss stood at INR 52,210 million.
Operational Efficiency
Increase in number of passengers by 10.3% for Q4 FY 2022 and Total number of passengers by 62.3% compared to the last year. Indigo has achieved a market share of 55.5% as of January 2022. Indigo has achieved fleet of 279 airlines including 142 new generations of A320 NEO’s , 48A320 CEO’s, 35ATR and 52 A321 NEO. Indigo operated 1,577 daily flights during the quarter including non-scheduled flights.
Liquidity
Indigo has a cash liquidity of INR 182,275 million, comprising INR 77,632 million of free cash and INR 104,644 million of restricted cash. The company has a total debt of INR 368,778 million.
Impact of COVID
The Airline industry is effected due to COVID. At the beginning of the year the revenue of the Airline Industry has reduced due to Delta and Omicron variant. Moreover the travel ban has impacted the revenue badly. There was restriction on international flights. However, towards the end of March, the Government allowed plying on International flights. Only 100 daily international flights and are currently operating in Q4 FY22.
New Partnership
Indigo has entered in new partnership with Qantas Group. This partnership will help IndiGo to grab new markets and set new customers. This is the fifth agreement of Indigo with international carrier along with American Airlines, Air FranceKLM, Qatar Airways and Turkish Airlines.