IndiGo eyes future capacity growth despite quarterly loss

IndiGo’s chief executive Rono Dutta is expecting his carrier to increase capacity by 40 percent for the coming quarter, even as the carrier reported a higher net loss for the quarter between July and September 2021. In an earning calls transcript released by the Indian low-cost carrier, Dutta attributed multiple factors that took place in the quarter that prompted it to raise capacity. This includes a fall in the number of COVID-19 cases in India, an increased pace of vaccination against the coronavirus, a relaxation of testing rules by the various Indian states, as well as a gradual removal in capacity caps by the Indian central government and expansion of travel bubble arrangements with other countries.

But beyond the expected increase in capacity, Dutta expressed concern at the rising cost of fuel, where fuel prices are now averaging $85 per barrel, as compared to the average price of $65 per barrel prior to the COVID-19 outbreak. “Things are looking better on the revenue side but the increase in input costs are cause for concern,” says Dutta.