IndiGo records Rs 9.9 bn net loss due to higher fuel costs and record groundings

IndiGo reported a total income of Rs 177.6 billion, a net increase of 14.6% as compared to the same period last year. IndiGo however reported a net loss of Rs 9.9 billion driven by higher fuel costs and a peak number of groundings, which have now started to reduce.

Pieter Elbers, CEO, said, “IndiGo’s growth and expansion continued as our topline grew by 14.6 percent on a year over year basis, in the second quarter to 178 billion rupees. In a traditionally weaker second quarter, results were further impacted by headwinds related to groundings and fuel costs. We have turned the corner as the number of grounded aircraft and associated costs have started reducing.

We continue to capitalize on the growth of the Indian market and associated opportunities and at the same time remain a cost leader in this competitive market. It marks a proud moment for us as we launch our business class two weeks from now and offer a new experience to our customers. We are receiving positive response to our recently launched loyalty rewards program – IndiGo BluChip. I would like to extend my gratitude to our 6E family for their continuous efforts in making IndiGo India’s preferred airline and courteously serving 28 million customers during the quarter.”

For the quarter ended September 30, 2024, compared to the same period last year, its Capacity increased by 8.2% to 38.2 billion, passengers increased by 5.8% to 27.8 million, revenue from Operations increased by 13.6% to Rs 169,696 million, net loss of Rs 867 million, compared to net profit of Rs 1,889 million.

On October 22, Indian airlines faced a surge in bomb threats, with nearly 50 flights affected, bringing the total to around 80 incidents in two days. Airlines such as Air India and IndiGo each reported 13 impacted flights, while Akasa Air and Vistara reported over 12 and 11 affected flights, respectively. This follows 30 threats reported on the night of October 21, bringing the total number of bomb threats against Indian flights to over 170 within just over a week.

Airlines have confirmed that they are coordinating with local authorities and following safety protocols. Although the threats have been hoaxes, Civil Aviation Minister K Rammohan Naidu has stressed the gravity of the situation. He assured that the government is addressing the situation while prioritizing passenger safety. He warned that those responsible for spreading hoaxes would face strict consequences, including placement on a no-fly list.