IndiGo, Asia’s largest low-cost carrier, reported an unexpected quarterly loss, amid cost pressures, operational disruptions and softer demand linked to the Middle East conflict.
Net loss of InterGlobe Aviation Ltd., the operator of IndiGo, came in at 25.4 billion rupees ($267 million) in the three months ended March 31, the company said in a stock exchange filing Friday. That compared with consensus analyst estimates for a profit of 18.7 billion rupees for the fiscal fourth quarter.
Quarterly revenue came in at 224.3 billion rupees, 1.3% above the same period last year. Total costs rose 30% to 259.3 billion rupees, even as fuel costs fell 1.5% year-on-year.
The company said it recorded a one-time expense of 2.5 billion rupees for the quarter.
The shock loss underscores a deeper challenge for IndiGo. The carrier is entering a period when its scale no longer guarantees insulation from volatility. It was only just recovering from an operational meltdown in December — which prompted regulatory action — when the Iran war piled on additional challenges.
Constraints brought by new labor code squeezed capacity, while rising costs crimped demand.
The quarter also brought a leadership change: Chief Executive Officer Pieter Elbers departed, with Willie Walsh named as his successor. Walsh is expected to join in the first week of August.
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