Indigo’s net loss narrows to Rs 1,064.2 Crore due to high fuel prices, falling Rupee

InterGlobe Aviation, the parent company of the country’s largest airline, IndiGo, on Wednesday announced a net loss of Rs 1,064.2 crore for the first quarter which ended June 30, 2022, due to headwinds caused by the depreciation of the rupee and the increase in fuel prices. In the corresponding quarter of last year, the company recorded a loss of Rs 3,174.2 crore.

Total revenue amounted to Rs 12,855.3 crore during the reporting period, up 327% from Rs 3,006.9 crore in the same period last year, which resulted in the highest quarterly earnings on record.

Fuel prices during the review period were up 61 percent from the same period last year as global crude oil prices soared in recent months, he said.

The airline saw its number of passengers increase by 221.9% compared to the same period last year.

For the quarter, IndiGo’s passenger ticket revenue was Rs 11,466.9 crore, an increase of 399.1% and ancillary revenue was Rs 1,286.3 crore, an increase of 92.5% compared to the same period last year.

As of June 30, 2022, the airline had a total cash balance of Rs 19,069.4 crore comprising Rs 8,303.7 crore cash on hand and Rs 10,765.7 crore cash restricted. The capitalized operating lease liability was Rs 34,474 crore. Total debt (including capitalized operating lease liability) was Rs 39,277.6 crore.

For the period April-June 2022, IndiGo had a technical dispatch reliability of 99.90%. IndiGo recorded an punctuality of 85.5% in four key metros and a flight cancellation rate of 0.61%.

As of June 30, 2022, a fleet of 281 aircraft including 35 A320 CEO, 146 A320 NEO, 65 A321 NEO and 35 ATR; a net increase of 6 aircraft during the quarter. IndiGo operated a peak of 1,667 daily flights during the quarter, including non-scheduled flights. During the quarter, provision of scheduled services to 73 domestic destinations and 20 international destinations.

In the second quarter of 2023, the capacity in terms of ASK is expected to increase by approximately 70-80% compared to the second quarter of fiscal 2022.

Company CEO Ronojoy Dutta said, “Our revenue performance this quarter has been impressive. We recorded the highest revenues ever generated by the company and thus generated profits at the operational level.

However, cost pressure on fuel and currencies prevented us from translating this strong revenue performance into net profitability. While our financial performance in the second quarter will be challenged by weak seasonality, the long-term revenue trend remains strong.”

The results fell after the close of market hours.

First post: STI


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