New Delhi, Oct 25 (PTI) Flying into the red after seven quarters, the country’s largest airline IndiGo on Friday posted a net loss of Rs 986.7 crore in the September quarter on headwinds from grounding of planes and higher fuel costs.
IndiGo, which also became India’s first airline to have more than 400 aircraft, said the number of grounded aircraft has reduced to high 60s from mid 70s and will further come down to sub-60 level by the year-end.
At the end of September, the carrier had a fleet of 410 planes.
In the 2023 September quarter, the airline’s profit stood at Rs 188.9 crore in the year-ago period.
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.
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.
In the wake of Pratt & Whitney engine issues, the airline has grounded many aircraft.
During the earnings call, IndiGo Chief Financial Officer Gaurav Negi said the number of grounded aircraft will come down to sub-60 level by year-end and further reduce to 40s by the start of the next financial year.
Elbers said the tailor-made business class will be introduced on the Delhi-Mumbai route and later, it will be available on 12 metro routes with a fleet of 40 plus aircraft.
Expanding its network, IndiGo will be launching services to more international destinations this fiscal.
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.
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.
InterGlobe Aviation, the parent of IndiGo, will invest Rs 295 crore in IndiGo Ventures Fund.
The fund will focus on aviation and allied sectors.
“The contribution agreement will be executed in FY25. The investment amount will be drawn by the scheme, over the next 3-4 years, through multiple tranches,” it said in a regulatory filing.
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. PTI RAM IAS DRR
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