India’s largest airline IndiGo posted ₹986 crore loss for the quarter ended September owing to higher fuel costs and grounding of several planes due to engine issues.
Revenue of InterGlobe Aviation, IndiGo’s parent, jumped 13.5% to ₹16,969 crore during the second quarter compared with ₹14,943 crore in the year-ago period.
In a traditionally weaker second quarter, results were further impacted by headwinds related to groundings and fuel costs, says Pieter Elbers, CEO, InterGlobe Aviation. “We have turned the corner as the number of grounded aircraft and associated costs have started reducing,” says Elbers.
The airline flew 27.8 million passengers in Q2, up 5.8% year-on-year.
“We continue to capitalise on the growth of the Indian market and associated opportunities and at the same time remain a cost leader in this competitive market,” the CEO of India’s biggest airline says.
Total expenses for the quarter ended September 2024 were ₹18,666 crore, an increase of 21.9% over the same quarter last year.
Yield, the average amount of revenue received per paying passenger flown one kilometre, rose 2.3% year-on-year to ₹4.55 in Q2 FY25 from ₹4.44 in the corresponding quarter last year.
The carrier’s available seat kilometres (ASK), a measure of an airplane's carrying capacity to generate revenue, rose 8.2% year-on-year to ₹3,820 crore in Q2. For the third quarter of FY25, IndiGo says capacity in terms of ASKs is expected to increase by early double digits as compared to the third quarter of fiscal year 2024.
The airline’s load factor, or the passenger carrying capacity being utilised, declined 0.6% to 82.6% for the September quarter.
IndiGo will launch its business class in two weeks, starting mid-November. IndiGo Stretch cabin features 12 seats in a 2-2 configuration, offering more space. The seats come with a six-way adjustable headrest with neck support, 5 inch deep recline, an electronic device holder, a 60-watt USB-Type C power supply, and a three-pin universal power outlet.
IndiGo also announced the launch of its much-awaited loyalty programme, ‘IndiGo BluChip’, designed to reward its frequent flyers.
As of September 2024, IndiGo had a total cash balance of ₹39,341 crore comprising ₹24,359 crore of free cash.
The carrier has a fleet of 410 aircraft including 41 A320 CEOs (17 damp lease and 4 secondary leases), 201 A320 NEOs, 112 A321 NEOs, 45 ATRs, 3 A321 freighters, 6 B737 (damp lease) and 2 B777 (damp lease); a net increase of 28 passenger aircraft during the quarter. IndiGo operated at a peak of 2,161 daily flights during the quarter including non-scheduled flights. During the quarter, it provided scheduled services to 88 domestic destinations and 31 international destinations.
