IndiGo posts Sept quarter loss as high fuel costs, weak rupee bite

IndiGo owner InterGlobe Aviation Ltd posted on Wednesday its first quarterly loss since its stock market debut in November 2015 as higher crude prices and a weaker rupee pushed its costs higher.

IndiGo, the country’s largest airline with over 40% market share, had a profit of ₹551.6 crore in the year-ago period.

Airline profits in the world’s fastest-growing aviation market have been dented by a surge in crude oil prices and a depreciating rupee, with InterGlobe’s rival Jet Airways Ltd struggling to keep itself afloat.

IndiGo’s co-founder and interim CEO Rahul Bhatia said aviation in India is facing significant pressures from high fuel costs, rupee depreciation and intense competition, all of which have impacted the airline’s profitability.

“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,” chief executive officer Rahul Bhatia said in a statement.

InterGlobe reported a loss of ₹652 crore ($89.1 million) for the quarter ended September 30, while revenue from operations rose 16.9%.

Total expenses soared 58.2 % to ₹7,502 crore, with aircraft fuel expenses surging 84.3% and foreign exchange loss widening over seven-fold.

In the same period a year ago, the total income stood at ₹5,505.6 crore. IndiGo, India’s largest airline by market share, expects a 35% rise in third-quarter available seat kilometres, a measure of the airline’s passenger carrying capacity.

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