IndiGo’s parent company, InterGlobe Aviation, reported a lower loss for the July to September quarter on October 29. Higher ticket prices and fuel charges helped the airline manage rising fuel costs during the period. IndiGo reported a loss of Rs. 2,055 crore, down from Rs. 2,614 crore in the same quarter last year.
The airline’s revenue rose 26% to Rs. 23,364 crore, while total expenses increased 19.2% to Rs. 26,357 crore. Willie Walsh, who became IndiGo’s CEO in August, led the airline during the quarter. Despite earning more revenue, IndiGo spent more than it earned and remained in loss.
Fuel remained one of IndiGo’s biggest expenses, accounting for 37.8% of its total spending during the quarter. The airline raised fuel charges on domestic and international flights in October to cover part of the increase. IndiGo had also raised these charges in April as fuel prices continued to climb.
Air travel usually slows after the summer holiday season and before the festive travel rush. Airlines often face pressure during these months as fewer people travel. IndiGo used higher fares and fuel charges to manage costs and reduce its quarterly loss.
IndiGo has also considered fuel hedging, a method airlines use to manage sudden changes in fuel prices. However, the company has not announced any formal plan to start hedging.
The latest results show that higher ticket prices helped IndiGo reduce its loss from last year. However, rising expenses remain a challenge, with total costs still higher than revenue. The airline’s future results will depend partly on fuel prices and whether passengers continue to pay higher fares.
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