IndiGo posts Q2 results: Rs.651.2 crore net loss due to fuel cost surge

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InterGlobe Aviation, the company that operates the popular airline, IndiGo, reported a net loss of Rs.651.2 crore for the quarter ended September 2018. The company found the reason for the huge losses to be the increase in fuel costs and the weakening rupee. In the year-ago period, the net loss of the company was reported as Rs.551.5 crore.

IndiGo
The company, in a statement, said that the reasons for the losses in Q2 FY 2019 are rising fuel costs, depreciating rupee, and intense competition.

The fuel expenses of the company increased by 84.03 percent – from Rs.1,647 crore in the second quarter of FY2018 to Rs.3,035.5 crore in the second quarter of FY2019.

The cost per available seat kilometres (CASK), including fuel expenses, was stated to be Rs.2.18. This is a 13.5 per cent rise when compared with the corresponding quarter of the previous fiscal.

The airline says the rising fuel costs, falling rupee, and the intense competition, together, affected the overall profitability of the company. The yield for Q2 FY 2019 was Rs.3.21 per kilometre while it was Rs.3.56 per kilometre in Q2 FY 2018.

However, the airline, one of the largest in India, reported a 17 per cent increase in revenue year-on-year. While the revenue in the second quarter last fiscal was Rs.5,290.9 crore, the revenue this year for the second quarter was Rs.6,185.31 crore.

InterGlobe reported an increase of 20 aircraft, adding up the total number to 189 aircraft. During the second quarter, the airline operated 1,294 daily flights – domestic and international. The company added 1 international destination and 4 domestic destinations during the quarter.

Source: Money Control

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