IndiGo Q2 Result: Airline Reports Rs 986 Crore Loss Amid Rising Fuel Costs

The airline reported a 12.8 per cent increase in fuel costs, rising to Rs 6,605.2 crore in the second quarter, up from Rs 5,856 crore during the same period last year

India's largest airline, IndiGo, reported a net loss of Rs 986.7 crore for the three months ending in September, primarily due to grounded planes and rising fuel costs. The airline posted a profit of Rs 188.9 crore in the same quarter last year. After excluding foreign exchange effects, IndiGo's loss for the second quarter of the current financial year was Rs 746.1 crore, as stated in their release on Friday.

By the end of September, the airline's fleet comprised 410 aircraft. CEO Pieter Elbers highlighted that despite the losses, IndiGo's growth trajectory remained strong, with revenue increasing by 14.6 per cent year-on-year to Rs 17,800 crore in the second quarter.

"In a traditionally weaker second quarter, results were further impacted by headwinds related to groundings and fuel costs. We have turned the corner as the number of grounded aircraft and associated costs have started reducing," he said. 

The airline reported a 12.8 per cent increase in fuel costs, rising to Rs 6,605.2 crore in the second quarter, up from Rs 5,856 crore during the same period last year. 

Additionally, expenses for aircraft and engine rentals skyrocketed to Rs 763.6 crore, compared to just Rs 195.6 crore in the previous year’s quarter. Overall, total expenses for the latest quarter surged nearly 22 per cent, reaching Rs 18,666.1 crore.

In the September quarter, the airline transported 27.8 million passengers, marking an increase of nearly 6 per cent compared to the same period last year. IndiGo maintained a strong market presence, capturing 63 per cent of the market share during this quarter.

The yield, measured as revenue per kilometre and reflecting ticket prices, rose by 2.3 per cent, reaching 4.55 per cent in the latest quarter, up from 4.44 a year earlier.

"For the quarter, our passenger ticket revenues were Rs 143,592 million, an increase of 9.9 per cent, and ancillary revenues were Rs 18,750 million, an increase of 20.9 per cent compared to the same period last year," the release said.