IndiGo posts Q2 loss on higher fuel costs, aircraft grounding

THE country's largest airline IndiGo on Friday posted a net loss of ₹9.86 billion (£90.27m) 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 ₹1.89 billion (£17.30m).

Excluding the impact of foreign exchange, IndiGo's loss in the second quarter of the current financial year stood at ₹7.46 billion (£68.29m), 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 ₹178 billion (£1.63bn) 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 in the second quarter, while aircraft and engine rentals surged over three times to ₹7.63 billion (£69.85m) in the second quarter, from ₹1.95 billion (£17.85m) in the year-ago period.

Total expenses in the latest quarter under review jumped nearly 22 per cent.

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.

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. (PTI)