New Delhi: Online travel company EaseMyTrip’s CEO Nishant Pitti on Saturday announced the withdrawal of the bid for GoFirst airline to concentrate on the company’s areas of strength. The decision came as the company posted a net loss of Rs 15 crore for the January-March quarter of the fiscal year 2024 (Q4 FY24), primarily owing to substantial write-offs related to now-bankrupt Go Airlines (India) Ltd, also known as GoFirst.
The company posted Rs 31 crore in net profit in the same period in the last fiscal year. In a statement, Pitti said that after careful consideration, “I have decided to withdraw from the GoAir (now branded as GoFirst) bid in my personal capacity”. “This decision allows me to better focus on other strategic priorities and initiatives that align with our long-term vision and growth objectives,” he added. (Also Read: From Sleeping On Railway Stations To Self-Made Billionaire: Read Inspiring Journey of 10th Grade Dropout Who Now Owns Rs 92,000 Cr Company)
The Q4 loss occurred after the travel company wrote off amounts recoverable from Go Airlines (India) Ltd after the holding company assessed that the chances of recovery are “remote in the pending dispute resolution proceedings of the airline at National Company Law Tribunal, Delhi Bench”. (Also Read: RBI Fines Hero FinCorp Rs 3.1 Lakh For Violating Fair Practices Code)
Pitti further said that the company’s commitment to delivering exceptional value and service remains unwavering as “we continue to navigate new opportunities and challenges”. For the full fiscal FY24, EaseMyTrip recorded revenue of Rs 609 crore, a 31 per cent increase from Rs 464 crore in FY23.
In Q4 FY24, the company acquired a 50 per cent stake in Jeewani Hospitality to develop a luxurious 150-room Radisson Blu hotel in Ayodhya. It also introduced EaseMyTrip Insurance Broker Pvt Ltd, marking its entry into the Rs 7.9 trillion insurance industry.