Airline reports loss of Rs 986 crore due to rising fuel costs

India’s largest airline, IndiGo, reported a net loss of Rs 986.7 billion for the three months ended September, mainly due to grounded planes and rising fuel costs. The airline posted a profit of Rs 188.9 billion in the year-ago quarter. Excluding foreign exchange effects, IndiGo’s loss stood at Rs 746.1 crore in the second quarter of the current fiscal, as stated in the press release on Friday.

By the end of September, the airline’s fleet consisted of 410 aircraft. CEO Pieter Elbers highlighted that despite the losses, IndiGo’s growth trajectory remained strong, with second-quarter revenue rising 14.6 percent year-on-year to Rs 17,800 crore.

“In a traditionally weaker second quarter, results were further impacted by headwinds related to flight landings and fuel costs. We have turned the corner as the number of aircraft on the ground and the associated costs have started to decline,” he said.

The airline reported a 12.8 per cent rise in fuel costs, rising to Rs 6,605.2 crore in the second quarter as against Rs 5,856 crore in the same period last year.

Additionally, expenditure on aircraft and engine rentals jumped to Rs 763.6 billion compared to just Rs 195.6 billion in the year-ago quarter. Overall, total expenditure rose nearly 22 percent in the last quarter to reach Rs 18,666.1 billion.

The airline carried 27.8 million passengers in the September quarter, up nearly 6 percent compared to the same period last year. IndiGo maintained its strong market presence and captured 63 per cent market share in the quarter.

Revenue, measured as revenue per kilometer and included in ticket prices, rose 2.3 percent and reached 4.55 percent in the latest quarter, up from 4.44 a year ago.

“During the quarter, our revenue from passenger tickets was Rs 143,592 million, an increase of 9.9 percent, and ancillary revenue was Rs 18,750 million, an increase of 20.9 percent compared to the same period last year,” the release said .

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