IndiGo in the Flight Line scaled
The Delhi-based low-cost airline IndiGo reported a net loss of Rs 9.9 billion for the quarter ending September 2024, primarily driven by higher fuel costs and a peak number of groundings, which have now started reducing. IndiGo had previously reported a net profit of Rs 1.88 billion in the same quarter.
During the latest quarter, IndiGo’s fuel costs stood at Rs 66.05 billion as against Rs 58.56 billion, an increase of 12.8 percent over the same quarter previously. Other costs, excluding fuel, went up 27.5 percent to Rs 120.61 billion against Rs 94.57 billion.
Commenting on the latest results, Pieter Elbers, Chief Executive Officer of IndiGo, said the airline’s growth and expansion continued, and its topline grew by 14.6 percent on a year-over-year basis in the second quarter to Rs 178 billion. “In a traditionally weaker second quarter, the results were further impacted by headwinds related to groundings and fuel costs. We have turned the corner as the number of grounded aircraft and associated costs have started reducing,” Elbers added.
Total income for the quarter ended September this year stood at Rs 177.59 billion, an increase of 14.6 percent over the same period last year, while passenger ticket revenues were reported at Rs 143.592 billion, an increase of 9.9 percent. The airline saw a 20.9 percent increase in ancillary revenues at Rs 18.75 billion during the latest quarter compared to the previous quarter. Total costs for the quarter ended September 2024 were Rs 186.66 billion, an increase of 21.9 percent from earlier.
IndiGo said that while yield increased by 2.3 percent to Rs 4.55, the load factor reduced by 0.6 points to 82.6 percent. During the latest quarter, the airline’s revenue from operations increased to Rs 169.69 billion, an increase of 13.6 percent.
Looking at future capacity growth, the airline said that in the third quarter of fiscal year 2025, capacity in terms of Available Seat Kilometre (ASK) is expected to increase by early double digits compared to the third quarter of fiscal year 2024.
ASK is a measure of an airline’s carrying capacity to generate revenue. It is calculated by multiplying the available seats on any given aircraft by the number of kilometers flown on a given flight.
The airline said that as of 30th September this year, its fleet size stood at 410 aircraft, including 41 A320 CEOs (17 damp lease and four secondary leases), 201 A320 NEOs, 112 A321 NEOs, 45 ATRs, three A321 freighters, six B737 (damp lease) and two B777 (damp lease). This is a net increase of 28 passenger aircraft during the quarter ended June 30 this year. At the end of September last year, IndiGo’s fleet size stood at 334 aircraft, an increase of 76 aircraft. This indicates that IndiGo added 1.4 aircraft every week between September 2023 and this year.
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