Indigo has announced that it will retrench 10% of its staff as it faces a sharp decline in revenue. The decision would likely affect Indigo’s 2,400 employees out of its total workforce of around 24,000 employees.
Last month, IndiGo announced that it would decrease its cost to 40 billion rupees ($533m; £420m).
IndiGo’s chief executive Ronojoy Dutta in a letter to stakeholders said: “It is impossible for our company to fly through this economic storm without making some sacrifices, in order to sustain our business operations.”
As per figures, Indigo is India’s biggest passenger airline with a market share of 48.9% as of March this year. It had been profitable for consecutively 10 years.
Last month, a global aviation industry body predicted that the decline in travel due to the coronavirus will make Airline losses exceed to $84bn (£66bn) this year.
The International Air Transport Association (IATA) of about 290 member airlines said that revenues would decrease to $419bn, a 50% slump compared to last year.