Despite reporting its strongest revenue performance in the first quarter of fiscal 2023, resulting in the highest ever quarterly earnings of Rs 130.2 billion ($1.64 billion), Delhi-based low-cost airline, IndiGo, reported a net loss of Rs 10,643 million ($ 134343 million) for the quarter ended June.

Total income for the quarter ended June 2022 was Rs 130,188 million ( $1,644.41 m), an increase of 310.7 percent over the same period last year. For the quarter, passenger ticket revenues were Rs 114,669 million ( $1,448.38 million), an increase of 399.1 percent and ancillary revenues were Rs 12,863 million ($162.47 million), an increase of 92.5 percent compared to the same period last year.

The airline claims that excluding the foreign currency loss of Rs 14,246 million ($179.79 million), the net profit for the quarter aggregates to  3,603 million ( $45.5 million) as compared to a loss of Rs 28,069 million ($354.54 million). During the quarter under review, fuel prices increased by 95.5 percent.

Commenting on the results the company’s CEO, Mr. Ronojoy Dutta said, “..our revenue performance this quarter was impressive. We reported the highest ever revenue generated by the company and thereby produced profits at an operational level. However, cost pressures on fuel and foreign exchange prevented us from translating this strong revenue performance into net profitability. While our financial performance in the second quarter will be challenged by weak seasonality, the long-term revenue trend remains strong.” From October, former KLM CEO Pieter Elbers will take over from Dutta.

The results come days after Captain Ashim Mittra, Senior Vice President, Flight Operations IndiGo wrote to IndiGo pilots saying that despite fuel and foreign exchange costs remaining prohibitive, the airline was hopeful that it will continue to inch its way back to profitability and higher growth. “Our aim has been to constantly revisit our salary and remuneration and reinstate them to pre-Covid levels. A further 6 percent reinstatement of salaries effective 1st September 2022 and the remaining 6 percent shall be reinstated on November 1 this year as we all welcome the festival of lights. These reinstatements will bring your salaries at par with pre-Covid level,” Captain Mittra had said.

He also announced that a foreign exchange card soft launch had been initiated wherein pilots undertaking international layovers shall be credited with the allowance in their respective Forex Cards. “We will go live on August 4,” Captain Mittra added.

As of June 30, the 281 aircraft fleet included 35 A320 CEOs, 146 A320 NEOs, 65 A321 NEOs and 35 ATRs. The airline had a net increase of six aircraft during the quarter.  IndiGo operated at a peak of 1,667 daily flights during the quarter including non-scheduled flights.

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Former Senior Deputy Editor at Business Line (aka The Hindu Business Line)

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