2 min read.Updated: 28 Oct 2021, 11:47 PM ISTRhik Kundu
Consolidated net revenue grew 91% from the year-earlier to ₹5,798.73 crore in the quarter
Fuel costs during the September quarter tripled to ₹1,989.40 crore
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NEW DELHI :
InterGlobe Aviation Ltd, the operator of India’s top domestic airline IndiGo, plunged to a seventh consecutive quarterly loss as sharply higher fuel costs and fixed expenses outweighed robust growth in revenues.
The company’s consolidated loss widened to ₹1,435.66 crore in the three months ended 30 September from ₹1,194.83 crore a year earlier.
Fuel costs during the quarter tripled to ₹1,989.40 crore. Expenses on supplementary rentals and aircraft repair and maintenance costs jumped 73.6% to ₹1,462.02 crore.
Consolidated net revenue grew 91% from the year-earlier to ₹5,798.73 crore in the September quarter. This was driven by the doubling of revenue from operations to ₹5608.50 crore.
While revenue exceeded analyst expectations, losses were wider than expected.
A Bloomberg poll of six brokerages estimated a net consolidated loss of ₹1,303.20 crore, and five forecasts the carrier to report a consolidated revenue of ₹5,374.90 crore in the September quarter.
“We are encouraged by the pace of revenue recovery. We continue to work towards a return to profitability in order to strengthen our balance sheet," said IndiGo’s chief executive officer Ronojoy Dutta, according to a regulatory filing.
“With a modern fleet, dedicated employees and a stronger economic environment, we are well-positioned to leverage all the growth opportunities around us," Dutta said.
Airlines were allowed to operate about 60% of their pre-covid capacity during September 2020, compared to 85% during September 2021, after air travel was resumed following a government-imposed ban between March and May 2020 to contain the pandemic.
Earlier this month, the government removed the cap on capacity.
Daily air ticket bookings this month have reached levels seen during January 2020, Dutta told analysts during a post-earnings call.
“It is time for repair and healing (after reporting consecutive quarterly losses)," he said, adding that the aviation sector is gradually emerging from the pandemic-induced crisis.
IndiGo’s plan will be to keep its costs down while adding more flights, Dutta said.
Indian airlines are likely to incur a consolidated loss of about $4.1 billion this financial year, similar to the losses clocked during FY2021 due to the pandemic, aviation consultant Capa India said in a June report.
As a result, airlines are expected to need close to $5 billion of recapitalization this financial year just to survive, after registering an $8 billion loss over the last two years, Capa said in its FY2022 Airline Outlook.
At the end of the September quarter, IndiGo had a total cash balance of ₹16,553.90 crore and total debt of ₹32,335.3 crore.
IndiGo’s fleet stood at 279 aircraft, including 72 A320 CEOs, 130 A320 NEOs, 44 A321 NEOs and 33 ATRs, as of 30 September. It operated between 759 and 1,209 daily flights connecting 69 domestic and several international destinations during the quarter.
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