Coronavirus impact: IndiGo says earnings to be hit on fall in daily bookings

InterGlobe Aviation, parent of country's largest airline IndiGo, on Wednesday said it expects quarterly earnings to be adversely impacted as daily bookings have declined 15-20 per cent in wake of coronavirus outbreak.

Besides, sharp fall in rupee would hit company's dollar-deminated liabilities, according to a statement.

"Over past few days however, week-on-week, we have seen a 15-20 per cent decline in our daily bookings. Please te that numbers could change from here based on how situation evolves," it said.

Citing situation, IndiGo said it expects "quarterly earnings to be materially impacted".

In addition, rupee has also depreciated sharply which will have an adverse impact on dollar-deminated liabilities primarily on account of capitalised operating leases, statement said.

Furr, it said in January and February, IndiGo experienced modest impact from coronavirus.

"We cancelled our flights to China and Hong Kong and reduced frequency to certain or Souast Asia markets. This capacity was redeployed in or markets without having a material impact on our revenues," it ted.

airline had a domestic market share of around 48 per cent in January, as per official data.

In wake of coronavirus outbreak, many countries, including India, have imposed travel restrictions. re are at least 60 cases of coronavirus infections in India.

Shares of InterGlobe Aviation tumbled nearly 5 per cent to close at Rs 1,155.45 on BSE.

Last week, International Air Transport Association (IATA) projected that airline industry could lose up to USD 113 billion in revenue this year due to coronavirus outbreak.

grouping's previous analysis, issued in February, put lost revenues at USD 29.3 billion. This was based on a scenario that would see impact of Covid-19 largely being confined to markets associated with China.