IndiGo’s loss for the January-March 2022, quarter ballooned to Rs 1,681.8 crore, up 47% from a loss of Rs 1,147.2 crore, due to a mix of elements like the Omicron wave, costlier jet fuel, and a weaker rupee.
India’s biggest airline IndiGo said
InterGlobe Aviation Ltd, the operator of India’s largest airline IndiGo, said a larger loss for the fourth quarter on Wednesday as higher fuel costs more than offset a rebound in need for air travel.
After two years of pandemic-curtailed travel, airlines globally have made a recovery in recent months riding on a wave of pent-up demand that has enabled them to bump up capacity.
The Russian invasion of Ukraine
But the industry’s comeback faces risks from a surge in international jet fuel costs, which neared 14-year highs in the quarter after the Russian invasion of Ukraine.
“Although traffic rebounded and demand was robust during the latter half of the quarter, we were challenged by high fuel prices and a weakening rupee,” Chief Executive Ronojoy Dutta told in a report.
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- InterGlobe’s aircraft fuel costs soared 68.2% to ₹ 3,221 crores ($415.31 million) in the time, while total costs surged 31.5%.
Net loss came in at ₹ 1,680 crores for the three months ended March 31, approximated with a loss of ₹ 1,159 crores a year earlier.
However, the resurgence in air travel demand allowed revenue from operations jumped 29% to ₹ 8,021 crores. Passenger load factor, or the passenger-carrying capacity being utilized, rose to 76.7%. Yields, a metric of profitability, grew 19.2% to ₹ 4.40.
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Source: NDTV
