IndiGo Q2 results: India’s largest airline posts first quarterly loss since listing on rising fuel costs

By: | Published: October 24, 2018 5:08 PM

IndiGo Q2 results: Amid rising ATF prices, weakening rupee and competitive fares, IndiGo's parent InterGlobe Aviation today posted a loss of Rs 652.1 crore in the quarter ended September, its first loss since getting listed in November 2015.

IndiGo Q2 results: IndiGo’s parent InterGlobe Aviation today posted a loss of Rs 652.1 crore in quarter ended September.

IndiGo Q2 results: Amid rising ATF prices, weakening rupee and competitive fares, IndiGo’s parent InterGlobe Aviation today posted a loss of Rs 652.1 crore in quarter ended September, its first loss since getting listed in November 2015. In the year ago period, country’s largest airline with more than 40 percent share market share posted a profit of Rs 551.6 crore.

IndiGo’s total income surged by more than 18 percent to Rs 6,514.2 crore in the quarter ended September 2018, IndiGo said in the exchange filing. The total income stood at Rs 5,505.6 crore, in the same period a year back. “High fuel cost, rupee depreciation and intense competition significantly impacted profitability,” IndiGo said in the exchange filing.

Also read: Share market HIGHLIGHTS: Sensex ends 187 pts higher; Nifty above 10,200; Bharti Airtel up 10%

In the same period, the total expenses climbed 58.2 percent to Rs 7,502.3 crore, the airline said.

“Aviation in India is facing significant pressures from high fuel costs, rupee depreciation and intense competition, all of which have impacted our profitability this quarter,” Rahul Bhatia, interim chief executive officer, company CEO Rahul Bhatia said. “Despite this difficult environment, IndiGo remains well-positioned, thanks to our low cost structure and strong balance sheet,” he also said.

Meanwhile, major benchmark indices on Wednesday ended four days of losses to record robust gains on the eve of the October F&O expiry on lower crude oil prices and a stronger rupee. The Sensex reclaimed the 34,000 mark as it surged 186.73 points, or 0.55 per cent, to end the day at 34,034. The Nifty closed the day up 77.95 points, or 0.77 per cent, at 10,225.

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