Don’t miss the latest developments in business and finance.

Fuel costs slash IndiGo operator InterGlobe's first-quarter profit

Image
Reuters
Last Updated : Jul 30 2018 | 5:24 PM IST

(Reuters) - InterGlobe Aviation Ltd, which operates top Indian airline IndiGo, reported its worst performance in at least three years on Monday as surging fuel costs and forex losses wiped out most of its first-quarter profit.

Its profit for the quarter to June 30 fell to 277.9 million rupees ($4 million) from 8.11 billion a year earlier, the company said on Monday https://www.bseindia.com/xml-data/corpfiling/AttachLive/360e6c3d-704e-4048-a30b-fc7d256c2d4c.pdf.

Fuel costs surged 54.4 percent to 27.16 billion rupees, while forex losses climbed to 2.46 billion rupees.

Competition in fare pricing also impacted the earnings, IndiGo said.

Its revenue per available seat kilometre fell 3.1 percent to 3.70 rupees. Passenger yields, which gauge the average fare paid per mile per customer, fell 5.4 percent.

Revenue from operations rose 13.2 percent to 65.12 billion rupees.

More From This Section

IndiGo also reaffirmed its guidance of a 25 percent rise in available seat kilometres, a measure of capacity, in the fiscal year that began on April 1.

Ahead of the results, InterGlobe shares ended flat on a broader Mumbai market that closed up 0.4 percent.

($1 = 68.6700 Indian rupees)

(Reporting by Krishna V Kurup in Bengaluru; editing by Jason Neely)

Also Read

First Published: Jul 30 2018 | 5:02 PM IST

Next Story