GoFirst revenue up 53.6% in September quarter

The airline’s passenger revenue during the September quarter was 555.85 crore, an increase of 76 per cent over the corresponding period of the previous year.

“The steps and strategic steps taken by the Company to bring down costs on a sustainable basis have led to a positive Ebitdaar for the six months period ended 30 September 2021 and for the second quarter of July to September 2021, the Company reported 13.9 per cent. Abiter has been reported. % Feather 104.64 crore,” said a person with direct knowledge of the matter.

Earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (Abitor) are metrics used to measure a company’s financial performance.

“Efforts by the company to rationalize and control costs through structural changes have not only re-organised its cost structure into an Ultra-Low-Cost Carrier (ULCC), but have also ensured that these The changes and savings are strategic, structural and sustainable, and as a result the company has turned cash positive on a month-to-month basis from September 21 onwards even after paying all costs including lease rentals,” said the person above requesting anonymity. Said while doing

However, the airline reported a loss of 923 crore during the period April-September 2021, though its total revenue grew by 105% to ₹ 1,202.90 crore during the same period.

India’s air passenger traffic has seen significant growth since June, with the easing of restrictions imposed to contain the spread of coronavirus following a steady decline in fresh Covid-19 cases, giving people more confidence to travel Is.

According to a recent report by credit rating agency Icra, domestic air passenger traffic grew 67 per cent year-on-year and 24 per cent sequentially in October to reach nearly 8.8 million passengers.

The airline rebranded itself from no-frills carrier GoAir to GoFirst in May ahead of its proposed initial public offering (IPO), which is likely to end in December. The airline said in May that the rebranding was intended to allow the carrier to operate in the ULCC model, which would give it a competitive advantage over its peers.

Mint It was reported in August that GoAir’s IPO, which was put on hold by the Securities and Exchange Board of India in June, had received a nod from the market regulator for its initial share sale price. 3,600 crores.

The budget airline is also planning to increase up to 1,500 crore through preferential placement of shares prior to the IPO, as per the prospectus.

The net proceeds will primarily be used to pay off debt. NS The airline hopes to raise Rs 3,600 crore, plans to use 2,015.81 crore for payment of outstanding loans and scheduled repayment, 279.26 crore for replacement of the letter of credit with a cash deposit for the lease rental payment and securing aircraft maintenance from the leasing companies, and 254.93 crore to clear dues to Indian Oil Corp Ltd for the purchase of jet fuel, it said in the draft prospectus.

“GoFirst has taken delivery of six new Airbus A320 Neo aircraft in the last seven months starting April 2021. The lease rentals for these newly inducted aircraft are much better than in pre-Covid times, and at the cost of one aircraft, which is much lower than the pre-Covid times. -Covid cost,” said the person.