New Delhi: India’s top airline IndiGo suffered a massive loss of Rs 987 crore in the second quarter. This is Interglobe Aviation’s first quarterly loss in two years. Increased fuel expenses and aircraft rental costs contributed heavily to IndiGo’s losses.
The largest airline in the country by market share reported a loss of 9.89 billion rupees ($117.7 million) for the three months ending September 30, a significant decline from a profit of 1.88 billion rupees during the same period last year, news agency Reuters reported.
“IndiGo’s growth and expansion continued as our topline grew by 14.6 percent on a year over year basis, in the second quarter to 178 billion rupees. 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,” IndiGo CEO Pieter Elbers said.
In the second quarter, IndiGo reported passenger ticket revenues of Rs 14,359 crore, reflecting a 10% increase. Ancillary revenues also grew, rising 21% year-on-year to Rs 1,875 crore.
The airline announced plans to launch its business class in two weeks, promising a new experience for customers. IndiGo expects its third-quarter capacity, measured in ASKs, to rise by early double digits compared to the same period in fiscal year 2024.
The company maintains a total cash balance of Rs 39,341 crore, which includes Rs 24,359 crore in free cash and Rs 14,982 crore in restricted cash.
(With inputs from Reuters)
