Airline’s Loss Widens To Rs 1,583 Crore On Higher Expenses

Airline's Loss Widens To Rs 1,583 Crore On Higher Expenses

InterGlobe Aviation, the parent firm of the country’s largest domestic airline IndiGo, on Friday logged widening of loss to Rs 1,583.34 crore for the September quarter, mainly because of higher expenses. The airline had incurred a loss of Rs 1,435.66 crore in the year-ago period.

However, IndiGo’s revenues zoomed to Rs 12,852.29 crore in the second quarter of the current fiscal year, from Rs 5,798.73 crore in the same period a year ago, according to a release. In the latest September quarter, total expenses jumped to Rs 14,435.57 crore.

IndiGo CEO Pieter Elbers said that September quarter was the second consecutive quarter wherein it operated at higher than pre-Covid capacity. “In spite of a seasonally weak quarter, we witnessed relatively good yields with strong demand across the network. However, fuel prices and exchange rates have adversely impacted our financial performance. We are on a steady path to recovery, benefiting from enormous opportunities both in domestic and international markets. With an industry challenged by global supply chain disruptions, we are working on various counter measures to accommodate this strong demand,” he said.

IndiGo said that the airline’s capacity has increased by 75 per cent. The passenger numbers jumped by 75.9 per cent on-year to 1.97 crore, it added. “Yield improved by 21 per cent to Rs 5.07 and load factor improved by 8 points to 79.2 per cent,” the company said.

Elbers said the airline’s international operations have sequentially “risen by 20 per cent”.

“Pricing discipline in domestic market in India helped revenues in Q2 which is a seasonal weak quarter,” he said, while adding depreciation of rupee and high ATF prices are, however, a “major headwind for IndiGo’s growth going forward”.

The carrier’s Chief Financial Officer Gaurav Negi said they expect a 25 per cent on-year rise in passenger load in Q3 FY23.

Indigo share price declined by 0.32 per cent at Rs 1,796.60 apiece at the BSE on Friday.

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