Mumbai, October 25 (IANS) – IndiGo, India’s leading low-cost airline, reported a significant net loss of Rs 986 crore for the second quarter of FY25, retreating from a net profit of Rs 188 crore in the same period last year. The loss largely stemmed from elevated fuel costs and an unprecedented number of aircraft groundings, which the company, managed by InterGlobe Aviation Ltd, stated are now on the decline.
Total expenses soared 21.9% year-over-year, reaching Rs 18,666 crore for the quarter ending September 30. Conversely, total income grew by 14.6% to Rs 17,760 crore compared to the previous year. Despite these challenges, IndiGo reported an 8.2% increase in capacity, with a total capacity of 38.2 billion, while passenger numbers rose by 5.8% to 27.8 million.
IndiGo CEO Pieter Elbers highlighted that the airline’s growth and expansion efforts remained steady, as evidenced by a 14.6% year-over-year increase in topline revenue. Elbers acknowledged the traditionally weaker performance in the second quarter, exacerbated by the impact of groundings and fuel costs. However, he expressed confidence that the worst is over as the grounded aircraft count and related expenses begin to decline.
“We are strategically positioned to leverage the growth of the Indian market while maintaining our stance as a cost leader,” Elbers affirmed.
According to data from the Directorate General of Civil Aviation (DGCA), India’s domestic air passenger traffic surged to 11.84 crore in the first nine months of the year from 11.28 crore in the same timeframe last year. IndiGo carried over 7.25 crore passengers during this period, securing a dominant market share of 61.3%, while Air India, operated by the Tata Group, transported over 1.64 crore passengers with a 13.9% market share.
IndiGo remains focused on capitalizing on market growth and opportunities as it navigates the challenges of the competitive aviation industry.
Original Story https://www.morungexpress.com/low-cost-carrier-indigo-clocks-massive-rs-986-crore-loss-in-q2
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Publish Date: 2024-10-25 17:59:00
