Mumbai: High prices of aviation turbine fuel and a weak rupee led to InterGlobe Aviation, promoter of IndiGo airlines, posting a record net loss of Rs 650 crore for the September quarter, against a profit of Rs 550 crore in the year-ago period. On an annual basis, the airline’s aviation turbine fuel expenses rose over 84 per cent to Rs 3,035 crore in Jul-Sep, while on a sequential basis, they were up 11.78 per cent. “Higher fuel prices responsible for more than half of the profitability decline, reminder due to currency depreciation and lower yields,” the airline said. “Input costs are not being recovered due to competitive pricing in the industry,” the company’s management said in a post-earnings conference call.
Revenue from operations rose 17 per cent on year to Rs 6,180 crore. On a sequential basis, the figure was down 5 per cent. The airline’s net foreign exchange loss was at Rs 340 crore in Jul-Sep, higher than Rs 46 crore a year ago. Interest costs rose sharply to Rs 130 crore from Rs 85.7 crore a year ago. IndiGo’s average fare per passenger, per km declined 9.7 per cent on year to Rs 3.21.
Seeks staffers’ help to cut costs IndiGo co-founder and interim CEO Rahul Bhatia urged airline employees on Wednesday to help reduce costs further besides being courteous. Bhatia, in an e-mail to the employees, also expressed “disappointment” at the financial performance, but said he was confident of success going forward. “We all have to sharpen our act even more and continue to focus on lowering our costs and providing on-time, courteous and hassle-free service that is essential for IndiGo to keep winning,” Bhatia said.
