IndiGo net loss widens INR 1,681.80 cr as fuel expenses escalate
InterGlobe Aviation, the operator of India’s largest airline IndiGo, on May 25 reported a consolidated net loss of INR 1,681.80 crore for the quarter ended March 2022 (Q4FY22), due to a surge in aircraft fuel expenses.
The company had posted a net loss of INR 1141.98 crore in the corresponding quarter of the previous fiscal.
Revenue of the company jumped 29% from a year ago to INR 8,020.75 crore versus INR 6,222.95 crore logged in the same quarter last year. Its passenger ticket revenues came in at INR 6,884.70 crore, up 38.4% while ancillary revenues stood at INR 1,058.30 crore, up 18.8% compared to the same period last fiscal.
Fuel expenses surged over 68% to INR 3,220.58 crore against INR 1,914.46 crore a year ago. Overall costs; however, rose 32% to INR 9,885 crore during the same period.
So far this year, Brent crude has surged 50% while in the March quarter it gained nearly 39%.
“This quarter has been difficult because of the demand destruction caused by the Omicron virus in the first half. Although traffic rebounded and demand was robust during the latter half of the quarter, we were challenged by high fuel costs and a weakening rupee”, said Ronojoy Dutta, CEO of IndiGo.
Dutta further said that the company believes IndiGo is best positioned to maximise revenue in a recovering market. “As we work to return the airline to profitability, we are focused on maintaining our cost leadership position and continuing to build the most efficient network in the region”, the CEO added.
The airline’s fleet, comprising 41 A320ceos, 143 A320neos, 56 A321neos, and 35 ATRs, operated a peak of 1,577 daily flights, including non-scheduled flights, during the quarter.
The firm said it sees the first quarter of the fiscal year 2023 capacity to increase by around 150% while for the whole fiscal, it expects capacity to increase by around 55-60%.
As of 31 March, IndiGo had a total cash balance of INR 18,227.5 crore, while the airline’s total debt (including the capitalised operating lease liability) stood at INR 36,877.80 crore.