Interglobe Aviation, the parent firm of low-cost carrier IndiGo, on November 4 reported a net loss of INR 1,583.33 crore in the second quarter of the fiscal year 2022-23.
The net loss in Q2 FY23 has increased as against Q2 FY22 when it stood at INR 1,435.65 crore and has significantly widened as compared to the first quarter of the current fiscal when it came in at INR 1,064.26 crore.
IndiGo’s revenue from operations in the September 2022 quarter climbed to INR 12,497.58 crore, which is 122% higher as compared to INR 5,608.49 crore clocked in the year-ago period.
The company recorded an EBITDAR of INR 229.2 crore, with a margin of 1.8%, as against an EBITDAR of INR 340.8 crore (6.1% margin) in the corresponding quarter of the last fiscal.
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IndiGo, in a press release, noted that the airline’s capacity has increased by 75%. The passenger numbers jumped by 75.9% on-year to 19.7 million, it added. “Yield improved by 21% to INR 5.07 and load factor improved by 8 points to 79.2%,” the company said.
“This is the second consecutive quarter wherein we have operated at higher than pre-covid capacity. In spite of a seasonally weak quarter, we witnessed relatively good yields with strong demand across the network. However, fuel prices and exchange rates have adversely impacted our financial performance.
We are on a steady path to recovery, benefiting from enormous opportunity both in domestic and international markets. With an industry challenged by global supply chain disruptions, we are working on various counter measures to accommodate this strong demand. We have an unparalleled network presence enabling air travel to 74 domestic and 26 International destinations, we will continue to accelerate and build on this.”Pieter Elbers, CEO, IndiGo
He also said the airline’s international operations have sequentially “risen by 20%”. “Pricing discipline in the domestic market in India helped revenues in Q2 which is a seasonally weak quarter,” Elbers added.
The carrier’s chief financial officer Gaurav Negi said they expect a 25% on-year rise in passenger load in Q3 FY23. Depreciation of the rupee and high ATF prices are, however, a “major headwind for IndiGo’s growth going forward”, Elbers noted.
During the quarter, the airline said fuel prices increased by 86.7% leading to an increase in fuel CASK (cost net of finance income per available seat kilometre) by 79.8%.
IndiGo’s passenger ticket revenues were INR 11,110.4 crore, an increase of 135.6% and ancillary revenues were INR 1,287.2 crore, an increase of 57.4% compared to the same period last year.
The airline’s fuel cost went up threefold to INR 6,257.9 crore during the quarter on a YoY basis. The airline’s fuel cost went up threefold to INR 6,257.9 crore during the quarter on a YoY basis.
IndiGo’s fleet strength at the end of the September quarter stood at 279, a net decrease of 3 passenger aircraft. In the third quarter, the airline expects capacity in terms of ASKs (available seats per kilometre) to increase by around 25% as compared to the third quarter of the fiscal year 2022.