IndiGo, India’s Largest Airline, Reports A Larger Loss As Costs Rise

IndiGo India's Largest Airline

InterGlobe Aviation Ltd, which operates India’s largest airline, IndiGo, posted a greater loss for the fourth quarter on Wednesday, as rising fuel prices outweighed a comeback in air travel demand.

Airlines have made a comeback in recent months, riding on a tide of pent-up demand that has encouraged them to increase capacity, after two years of pandemic-affected travel.

However, a jump in global jet fuel prices, which hit 14-year highs in the quarter following Russia’s invasion of Ukraine, threatens the industry’s recovery.

“We were challenged by high fuel prices and a falling rupee over the latter half of the quarter, despite traffic rebounding and demand being healthy,” said CEO Ronojoy Dutta in a statement.

In the same year, InterGlobe’s aircraft fuel expenses increased by 68.2% to 32.21 billion, while total expenses increased by 31.5 percent.

For the three months ending March 31, the company lost 16.80 billion, compared to 11.59 billion a year before.

The revival in air travel demand, on the other hand, boosted revenue from operations by 29% to 80.21 billion rupees. The passenger load factor, or the amount of passengers carried, increased to 76.7 percent.

Yields, which are a measure of profitability, rose 19.2 percent to 4.40 rupees.

Read More:

Akasa Air, Backed by Rakesh Jhunjhunwala