IndiGo loss widens to ₹1,583 crore on higher fuel costs, exchange rate woes

Growth in passenger demand, higher airfares failed to cut widening of loss

Budget carrier IndiGo’s loss widened to ₹1,583 crore in the quarter ended September due to rising fuel prices and a weaker rupee exchange rates, and despite a growth in passenger demand as well as higher airfares.

The airline had recorded a loss of ₹1,435 crore a year earlier, and a loss of ₹1,064 crore in the quarter ended June 2022.

Compared with last year, the airline’s revenue from operations more than doubled to ₹12,497 crore as passenger numbers increased 76% to 1.9 crore and yields (rupee earned for each passenger mile) expanded by 21%. However, fuel prices shot up by 86.7%, contributing to the rise in total cost for the airline by 99.5%.

The airline - which has been forced to ground 20 of its 276 planes due to delays in the supply of spare engines by manufacturer Pratt & Whitney as well as delays in induction of new aircraft - was “working on various counter measures to accommodate” strong passenger demand, said IndiGo CEO Pieter Elbers, in an attempt to assuage concerns over capacity issues in the market resulting in a rise in airfares.