Mumbai: InterGlobe Aviation Ltd, the operator of IndiGo airline, on Wednesday reported a loss for the September quarter, its first-ever since the company got listed on the bourses in November 2015, as rising jet fuel prices, currency depreciation, lower yields and a foreign exchange loss outweighed higher passenger traffic.
Net loss in the three months through September stood at Rs 652.13 crore. The airline had reported a profit of Rs 551.56 crore a year ago. Revenue rose 18.32% to Rs 6,514.20 crore from a year earlier, as IndiGo flew more passengers, although at the expense of yields, as intense competition restricted its ability to raise fares enough to sufficiently cover the increased costs.
IndiGo, one of the biggest customers globally for Airbus, would have plunged into a bigger loss in the second quarter had it not been for finance income, income from sale and leaseback of aircraft, and compensation for engine snags, which led to the grounding of A320neo jetliners powered by Pratt & Whitney engines during the quarter. The airline reported a 53.3% rise in its other income to Rs 328.9 crore during the quarter under review, against a year ago.
IndiGo reported a 58.2% increase in total expenses to Rs 7,502.3 crore during the September quarter, compared with the year-ago period. Fuel expenses surged 84.3% to Rs 3,035.crore. Foreign exchange loss stood at Rs 335.4 crore during the quarter.
Aviation in India is facing significant pressures from high fuel costs, rupee depreciation and intense competition, all of which affected profitability during the quarter, IndiGo s co-founder and interim CEO Rahul Bhatia said in a statement.
The airline carried a total of 145.42 lakh domestic passengers in the September quarter, up from 110.42 lakh a year ago, according to government data.
IndiGo had 189 aircraft at the end of September and a total cash balance of Rs 13,163.7 crore. It ended the quarter with a net debt of Rs 2,641.1 crore.