The country’s largest airline IndiGo incurring losses despite rising earnings
New Delhi| InterGlobe Aviation, the company operating the country’s largest airline IndiGo, released the September quarter results on Friday. Despite increase in earnings after two years, the airline is once again in loss. According to company data, it suffered a net loss of Rs 986.7 crore in the July-September quarter. According to the company, the aircraft’s standing and high fuel costs affected its profits. IndiGo’s profit in the first quarter (April-June) of the current financial year was Rs 2,728 crore. At the same time, the airline’s profit during the quarter ended September 2023 a year ago was Rs 188.9 crore.
Spending on fuel rose 12.8 per cent to Rs 6,605.2 crore in the second quarter, according to IndiGo, from Rs 5,856 crore in the same period a year ago. Aircraft and engine fares also rose to Rs 763.6 crore in the second quarter from just Rs 195.6 crore in the same quarter last year. Apart from this, the company paid tax of about Rs 79.6 crore in the September quarter, whereas a year ago the company had paid only Rs 20 lakh as tax head. The company’s total expenditure rose nearly 22 percent to Rs 18,666.1 crore in the September quarter. This figure contributed the most to increasing the company’s losses.
IndiGo’s per passenger income (yield calculated based on cost per kilometer) rose 2.3 per cent to Rs 4.55 per kilometer in the September quarter, compared to Rs 4.44 per kilometer in the same quarter a year ago and Rs 5.24 per kilometer in the April-June quarter IndiGo’s income rose 13.6% to Rs 16,970 crore, according to September quarter data. But with airport charges rising by 41%, aircraft rental and maintenance expenses rising by 29.6% and fuel expenses rising by 13%, the airline failed to extract profits from its income and once again fell into losses after a gap of two years. Due to increasing tension in West Asia, jet fuel prices have seen a lot of fluctuations in the last few months, its impact is now visible on the financial results of companies as well.
The country’s largest airline carried 27.8 million passengers in the September quarter, up nearly six percent from the same period a year earlier. IndiGo achieved 63 percent market share in the September quarter. The company’s market share was 61 percent in the April June quarter. During the release of results on Friday, the company had a market cap of around Rs 1.68 lakh crore and was the 52nd most valuable company in the country.
According to the company, excluding the impact of foreign exchange, IndiGo’s loss in the second quarter of the current financial year stood at Rs 746.1 crore. By September the airline had a fleet of 410 aircraft. IndiGo Chief Executive Officer Peter Albers said the airline’s growth and expansion process is ongoing, but due to difficulties related to parts supply chain and engine maintenance during the July-September quarter, the number of grounded aircraft in the fleet reached 60. Reached close. “In a traditionally weak second quarter, aircraft stand-downs and fuel surges that impacted financial results”, Albers said Albers appeared positive towards the future, however, and explained, “We are at a turning point, as the number of aircraft parked and associated costs start to decrease”
