IndiGo Q2 results: Airline posts Rs 986 cr loss due to higher fuel costs

IndiGo CEO Pieter Elbers said the airline's growth and expansion continued as the topline grew by 14.6 per cent on a year-on-year basis in the September quarter to Rs 17,800 crore

The country's largest airline IndiGo on Friday posted a net loss of Rs 986.7 crore in the three months ended September, as grounding of planes and higher fuel costs took a toll on the bottomline. 

  In the 2023 September quarter, the airline's profit stood at Rs 188.9 crore.

  Excluding the impact of foreign exchange, IndiGo's loss in the second quarter of the current financial year stood at Rs 746.1 crore, according to a release.

  At the end of September, the carrier had a fleet of 410 planes.

  IndiGo CEO Pieter Elbers said the airline's growth and expansion continued as the topline grew 14.6 per cent on a year-on-year basis to Rs 17,800 crore in the second quarter.

  "In a traditionally weaker second quarter, results were further impacted by headwinds related to groundings and fuel costs. We have turned the corner as the number of grounded aircraft and associated costs have started reducing," he said.

  The airline said fuel costs increased 12.8 per cent to Rs 6,605.2 crore in the second quarter, from Rs 5,856 crore in the same period a year ago.

  Aircraft and engine rentals surged to Rs 763.6 crore in the second quarter, from Rs 195.6 crore in the year-ago period.

Total expenses in the latest quarter under review jumped nearly 22 per cent to Rs 18,666.1 crore. 

In the September quarter, the airline carried 27.8 million passengers, which was nearly 6 per cent higher compared to the same period a year ago. Indigo commanded a 63 per cent market share in the September quarter. 

Yield -- calculated as cost per kilometre, and an indicator of ticket price -- climbed 2.3 per cent to 4.55 in the latest September quarter from 4.44 in the year-ago period.

  "For the quarter, our passenger ticket revenues were Rs 143,592 million, an increase of 9.9 per cent and ancillary revenues were Rs 18,750 million, an increase of 20.9 per cent compared to the same period last year," the release said.

For the December quarter, the airline expects capacity in terms of ASKs (available seat kilometres) to increase by "early double-digits" as compared to the year-ago period.

  Elbers noted that the airline continues to capitalise on the growth of the Indian market and associated opportunities and at the same time remain a cost leader in this competitive market.

  "It marks a proud moment for us as we launch our business class two weeks from now and offer a new experience to our customers. We are receiving positive response to our recently launched loyalty rewards program – IndiGo BluChip," he added.

  "IndiGo had a total cash balance of Rs 393,419 million comprising Rs 243,597 million of free cash and Rs 149,822 million of restricted cash," the release said.