 "IndiGo Q1 FY25 results: Net profit declines 11.7% on higher expenses")
IndiGo operator Interglobe Aviation reported a first-quarter profit on Friday that fell 11.7% as higher expenses overshadowed strong air travel demand.
India's largest airline by market share posted a profit of Rs 2,727 crore ($326 million) for the three months ending June 30, compared with Rs 3,087 crore a year earlier.
Costs for Indian airlines are expected to rise 3.8% in fiscal 2025, a top aviation consultancy said last month.
IndiGo's total expenses in the first quarter rose about 24% to Rs 17,449 crore, with aircraft fuel expenses accounting for about 37% of the costs. Its aircraft rental costs more than tripled.
The company also reported a foreign exchange loss of 575 million rupees in the quarter, compared with a gain of Rs 116 crore a year earlier.
IndiGo's revenue from operations rose 17.3% to Rs 19,571 crore.
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Available seat kilometres, a measure of the airline's passenger carrying capacity, rose 11.1%, compared with a company-provided estimate of 10%-12% growth.
The low-cost carrier forecast high single-digit percentage growth for capacity in the second quarter.