IndiGo Narrows Loss To Rs 1,064 Crore In June Quarter On Higher Income

Private airline IndiGo on Wednesday reported a net loss of Rs 1,064 crore for the quarter ending June due to high fuel prices and a weak rupee.

The Q1 loss was 66.5 per cent less than the loss incurred by the airline in the corresponding period a year ago, IndiGo said in a statement.

The total income of India's largest airline in the first quarter of 2022-23 was Rs 13,019 crore against Rs 3,170 crore in the corresponding period a year ago, it stated.

However, the airline's total expenses jumped over twofold to Rs 14,083 crore in April-June compared to Rs 6,344 crore in April-June 2021-22, it mentioned.

Fuel cost soared by more than fourfold to Rs 5,990 crore in the quarter under review from Rs 1,215 crore in the year-ago quarter, it said.

While IndiGo's load factor (occupancy rate) was 58.7 per cent in Q1 of 2021-22, it increased to 79.6 per cent in Q1 of 2022-23, it noted.

The airline's CEO Ronojoy Dutta said the carrier's performance in Q1 was impressive.

"We reported the highest ever revenue generated by the company and thereby produced profits at an operational level. However, cost pressures on fuel and foreign exchange prevented us from translating this strong revenue performance into net profitability," he mentioned.

While our financial performance in the second quarter will be challenged by weak seasonality, the long-term revenue trend remains strong, he stated.