IndiGo loss widens to Rs 1,583 crore on fuel cost, forex
NEW DELHI: Hit by higher fuel prices and foreign exchange losses, InterGlobe Aviation, the operator of India’s largest airline IndiGo, on Friday reported an increase in net loss for the second quarter. IndiGo’s loss widened to Rs 1,583 crore for the July-September quarter (Q2FY23), from Rs 1,436 crore in the year-ago quarter.
IndiGo claims that for the quarter ending September 2022, it’s net loss came at Rs 3,82 crore excluding foreign exchange loss. It pegs its foreign exchange loss at Rs 1,201 crore.
Company’s CEO, Pieter Elbers said, “This is the second consecutive quarter wherein we have operated at higher than pre-covid capacity. In spite of a seasonally weak quarter, we witnessed relatively good yields with strong demand across the network.”
Elbers added, “However, fuel prices and exchange rates have adversely impacted our financial performance.” Total income for the quarter ended September 2022 was Rs 12,852 crore, an increase of 121.6% over the same period last year.
For the quarter, passenger ticket revenues were Rs 11,110 crore, an increase of 135.6%. IndiGo’s yield, rupees it earn per kilometre (INR/km), also improved from Rs 4.19 in Q2 of last financial year to Rs 5.07 in Q2FY23.
IndiGo’s total expenses doubled in one year to Rs 14,436 crore in the second quarter of the financial year 2022-23. The airline’s fuel expenses increased from Rs 1,989 crore in Q2FY22 to Rs 6,258 crore in Q2FY23 as the retail jet fuel prices witnessed multiple hikes this year.
To meet the required demand as the industry is facing supply chain issues, Indigo said that it is looking to wet lease planes. “With an industry challenged by global supply chain disruptions, we are working on various counter measures to accommodate this strong demand,” the company CEO said.
As of 30th September 2022, IndiGo said that it had a fleet of 279 aircraft, a net decrease of 3 passenger aircraft during the quarter. IndiGo said that for third quarter of the financial year 2022-2023 capacity in terms of ASKs (available seat kilometres) is expected to increase by nearly 25% as compared to the third quarter of fiscal year 2022.