IndiGo, the nation’s largest airline, reported a nearly 12% drop in profit after tax, amounting to Rs 2,728.8 crore for the quarter ending in June. This decline is attributed to higher fuel and other operating expenses. Despite a total income increase of 18%, reaching Rs 20,248.9 crore in the first quarter of the current financial year, overall expenses surged by 24% to Rs 17,444.9 crore, largely driven by the rise in fuel costs.
In comparison, IndiGo’s parent company, InterGlobe Aviation, recorded a profit after tax of Rs 3,090.6 crore in the June 2023 quarter. Excluding foreign exchange impacts, the carrier’s profit after tax for the latest June quarter was Rs 2,786.3 crore. The previous year’s total income for the same period was Rs 17,160.9 crore.
The airline’s expenses, including fuel costs, increased by 24%, with fuel expenses specifically rising by 22.7% to Rs 6,416.5 crore for the quarter ending in June 2024. The year-ago period saw total expenses at Rs 14,070.2 crore.
Aircraft and engine rentals rose significantly to Rs 624.1 crore in the latest quarter from Rs 194.6 crore in the same period last year. The load factor, indicating seat occupancy, decreased to 86.7% from 88.6% a year earlier.
IndiGo CEO Pieter Elbers expressed satisfaction with the quarterly performance, highlighting an 18% growth in total income to Rs 202.5 billion and a net profit of Rs 27.3 billion, resulting in a solid margin of around 14%. As of the end of June, the airline’s fleet comprised 382 planes, including 18 aircraft on wet lease.
