Falling demand and higher engine-related as well as fuel costs, saw low-cost airline IndiGo’s net profit fall 11.7%, year-on-year to Rs 2,729 crore  during the April-June quarter. Aircraft fuel expenses saw a rise of 22.7% to Rs 6,416.5 crore during the period.

While, this is the airline’s first profit decline in seven quarters, it still beat Bloomberg consensus estimate of Rs 2,503 crore.

Revenue from operations at Rs 19,571 crore, was up 17.3% from the year-ago period, and was also above estimates.

The company reported an Ebitdar (earnings before interest, tax depreciation, amortisation, and rent) of Rs 5,811 crore, up 11% YoY.

Passenger ticket revenues were at Rs 16,502 crore, up 1% YoY and ancillary revenue rose 14% to Rs 1,763 crore. Other income was up 42% to Rs 678 crore. Total expenses at Rs 17,445 crore was up 24%.

“I am pleased to report another strong quarterly financial performance for the first quarter of FY25. A continued growth in total income resulted in a solid margin of around 14%. I want to extend heartfelt gratitude to our 28 million customers this quarter for their continued loyalty and choosing IndiGo for their travels,” CEO, Pieter Elbers, said.

Operationally, the ASK (available seat per kilometre) increased 11% YoY to 36.3 billion, while RPK (revenue per passenger) was up 9% to 31.5 billion.

The CASK (cost of available seat kilometre) increased 11% to Rs 4.62 while CASK (ex-fuel) jumped 11% to Rs 2.86.

The passenger load factor dropped 1.9 points to 86.7% compared to 88.6 in the same period last year. The yields were up marginally by 1.2% to Rs 5.24 per kilometre. The carrier had benefited from insolvent Go Airlines grounding last year, which had bolstered its airfares and load factor.

IndiGo had a total cash balance of Rs 36,101 crore, comprising Rs 22,087 crore of free cash and Rs 14,013 crore of restricted cash. The capitalised operating lease liability was Rs 44,957crore and the total debt (including the capitalised operating lease liability) was Rs 52,526 crore at the end of the quarter.

IndiGo had a fleet of 382 aircrft inlcuding 38 A320 CEOs, 196 A320 NEOs, 98 A321 NEOs, 45 ATRs, 3 A321 freighters, and 2 B777, showing a net increase of 15 passenger aircraft during the quarter.

On Friday, IndiGo shares closed up 1.15% at Rs 4,483 on the NSE.