InterGlobe Aviation, IndiGo’s parent company posted a net loss of Rs 652.1 crore in their quarterly financial report for the September-end quarter for the current fiscal year, registering its first loss since getting listed in November 2015, due to the rising aviation fuel prices, weakening rupee and competitive fares.
IndiGo, the largest airline in the country had earlier reported a profit of Rs 551.6 crores in the corresponding quarter of the previous fiscal. IndiGo’s total revenue for the quarter under review inclined by around 18 per cent to Rs 6,514.2 crores, whereas the total revenue during the September-end quarter of 2017 stood at Rs 5,505.6 crores.
IndiGo said in the exchange filing. “High fuel cost, rupee depreciation and intense competition significantly impacted profitability.” Rahul Bhatia, interim Chief Executive Officer said, “Aviation in India is facing significant pressures from high fuel costs, rupee depreciation and intense competition, all of which have impacted our profitability this quarter.”
“Despite this difficult environment, IndiGo remains well-positioned, thanks to our low-cost structure and strong balance sheet,” he added. According to the company’s statement, the total expenses surged 58.2 per cent to Rs 7,502.3 crores. Fuel expenses increased 84% to Rs. 3,035 crores meanwhile, the company also incurred a foreign exchange loss of Rs. 335.4 crores during the September-end quarter.
EBITDA (Earnings before interest, tax, depreciation and amortization) declined 93 per cent to Rs 111 crores, partly on the back of higher maintenance costs related to old A320neo aircraft. IndiGo added 20 planes in the September-ended quarter, taking the total count of aircraft in its fleet to 189.