The country’s largest airline IndiGo on Thursday reported a $A loss of Rs 238 crore for the three months ended June, as higher fuel prices, foreign exchange losses and conflict in West Asia weighed on the bottom line.
The airline made a profit of $2,176.3 crore in the same period last year.
In the first quarter of the current fiscal year, InterGlobe Aviation saw its total income rise to $25,614.1 crore from $21,542.6 crores a year ago.
However, overall expenses rose during the same period, according to a statement.
“A combination of higher fuel prices, negative foreign exchange movement and conflict in the Middle East impacted profitability during the quarter, resulting in a net loss of $“2.4 billion,” she said.
InterGlobe Aviation is the parent company of IndiGo, which has a domestic market share of over 66 per cent.
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Demand remains healthy: Managing Director Rahul Bhatia
IndiGo managing director Rahul Bhatia said the first quarter was impacted by a volatile operating environment, with rising fuel costs and network-related constraints in West Asia impacting profitability.
“At the same time, demand remained good, and our revenue performance improved year-on-year, supported by improved revenues and continued customer preference for IndiGo, as we proudly served over 31 million passengers,” he noted.
Bhatia said the pressure of fuel costs and the depreciation of the rupee led to a loss of about Rs 200,000 $2 billion for the first quarter.
“While there remains uncertainty in the near term, we remain committed to our long-term priorities of strengthening the network, enhancing customer choice and creating sustainable value for all stakeholders,” he added.
