Business · Companies · 1 hr ago
IndiGo reports third straight quarterly loss as fuel costs rise
IndiGo reported a ₹1,879.1 crore loss for the quarter ended September 30, its third consecutive quarterly loss.
The Indian airline said higher airfares were unavoidable as fuel prices pushed up operating costs.
Aviation fuel made up 37.8% of IndiGo’s expenses, which rose 19.2% from a year earlier.
CEO Willie Walsh said fuel costs had reached unprecedented levels as airlines faced higher oil prices amid conflict in the Middle East.
IndiGo plans low single-digit capacity growth in the December quarter and will adjust flights according to demand, fuel prices and geopolitical developments.
It expects more than 25% growth in passenger revenue per available seat kilometre in that quarter, based on October trends and festive-season travel demand.
The airline expects domestic demand to remain strong, while capacity reductions will focus more on international routes.
IndiGo reported its third consecutive quarterly loss, posting a loss of ₹1,879.1 crore for the quarter ended September 30.
The airline said higher fuel costs, amid geopolitical turmoil, weighed on its results.
Revenue rose 26% year on year, but fuel costs also increased sharply.
IndiGo said it would adjust capacity and raise fares to help contain the impact of higher costs.
It projected low single-digit capacity growth in the December quarter and passenger revenue per available seat kilometre growth of more than 25% year on year.
- Who
- IndiGo, India’s largest airline.
- What
- It reported a third consecutive quarterly loss of ₹1,879.1 crore and said higher fares and capacity adjustments would help address rising costs.
- When
- For the quarter ended September 30; the results were reported on Thursday.
- Where
- India.
- Why
- Higher fuel costs and geopolitical turmoil weighed on the airline’s results.
This story does not have two clearly opposing sides.
IndiGo recorded a loss of ₹1,879.1 crore, compared with a loss of ₹2,614 crore in the same quarter a year earlier.
IndiGo reported its quarterly results and outlined plans for fares and capacity.
IndiGo projected low single-digit year-on-year capacity growth and passenger revenue per available seat kilometre growth of more than 25%.
- Quarterly loss
- ₹1,879.1 crore
- Comparison
- ₹2,614 crore loss in the corresponding quarter a year earlier
- Revenue growth
- 26% year on year
- Fuel share of expenses
- 37.8%
- December-quarter capacity outlook
- Low single-digit year-on-year growth
- Passenger revenue outlook
- More than 25% year-on-year growth in passenger revenue per available seat kilometre
4 sources
IndiGo posts ₹1,879 crore loss, CEO signals more fare hikes as fuel bill rises
IndiGo posts Rs 1,879-crore loss as high fuel costs, geopolitical woes hit; capacity cuts & yield management offer only partial relief, says CEO Willie Walsh
IndiGo CEO Willie Walsh says fare hikes unavoidable amid fuel cost surge as airline posts ₹1,879.1 crore Q2 loss
What people are saying
I've been in this industry for 47 years. I've seen what I thought were high fuel costs. I've never seen anything like this,
We have no choice but to look to increase fares in an effort to offset the very significant increase that we have seen in the fuel bill,
While we have been able to increase the unit revenue of ticket price, this didn't fully offset the hike in fuel price.