INDIGO POSTS ₹1,062-CR LOSS AS COSTS SURGE

NEW DELHI: Budget carrier IndiGo’s parent InterGlobe Aviation on Thursday posted a net loss of ₹1,062 crore for the September quarter, mainly on account of higher costs related to operating lease liabilities. The company had a loss of ₹651.5 crore in the same period a year ago.

According to a release, InterGlobe Aviation’s total income rose 31% to ₹8,539.8 crore in the second quarter of the current fiscal. In the year-ago period, income stood at ₹6,514.1 crore.

IndiGo chief executive officer (CEO) Ronojoy Dutta said that while revenue performance was much better during the September quarter, the losses were accentuated by forex losses on operating lease liabilities created under Indian Accounting Standard 116 (IndAS 116), and reassessment of accrual estimates for future maintenance cost.

The loss before tax stood at ₹1,031.8 crore in the latest September quarter where it was ₹987.2 crore in the year-ago period.

“Mark-to-market losses on capitalised operating leases of ₹4,282 million and higher maintenance cost of ₹3,190 million significantly impacted profitability,” the company said.

During the September quarter, yield or average fare paid per passenger increased by 9.4%.

Total cost jumped nearly 28% to ₹9,571.6 crore in the three months ended September. Aircraft fuel costs, meanwhile, rose a modest 2.6%, much lower than the 84% jump a year earlier.

At the end of September, IndiGo had a total cash balance of ₹18,736.2 crore, including ₹8,706.3 crore of free cash.

IndiGo and rival SpiceJet Ltd have benefitted so far this year from the collapse of cashstrapped Jet Airways as both raced to fill Jet’s vacated slots.