This Article is From May 25, 2022

India's Top Airline, IndiGo, Posts Larger Loss As Expenses Balloon

Net loss for IndiGo came in at Rs 16.80 billion for the three months that ended March 31, compared with a loss of Rs 11.59 billion a year earlier.

India's Top Airline, IndiGo, Posts Larger Loss As Expenses Balloon

IndiGo's total expenses surged 31.5% during the quarter. (File)

Bengaluru:

InterGlobe Aviation Ltd, the operator of India's biggest airline IndiGo, reported a larger loss for the fourth quarter on Wednesday as higher fuel costs more than offset a rebound in demand for air travel.

After two years of pandemic-curtailed travel, airlines globally have made a comeback in recent months riding on a wave of pent-up demand that has encouraged them to bump up capacity.

But the industry's recovery faces risks from a surge in global jet fuel prices, which neared 14-year highs in the quarter after the Russian invasion of Ukraine.

"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," Chief Executive Ronojoy Dutta said in a statement.

InterGlobe's aircraft fuel expenses soared 68.2% to Rs 32.21 billion in the period, while total expenses surged 31.5%.

Net loss came in at Rs 16.80 billion for the three months that ended March 31, compared with a loss of Rs 11.59 billion a year earlier.

However, the resurgence in air travel demand helped revenue from operations jump 29% to 80.21 billion rupees. Passenger load factor, or the passenger carrying capacity being used, rose to 76.7%.

Yields, a metric of profitability, increased 19.2% to 4.40 rupees.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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