IndiGo: The country’s largest airline is in loss despite increasing income, what are the reasons behind this?

The Uncut


airline financial performance Indigo Airlines, the country’s largest airline, has reported a loss of Rs 986.7 crore in the second quarter of FY 24-25. This is the first time in two years that the company has made a loss, even as its revenue grew 13.6% to Rs 16,970 crore.

due to loss

The company says the main reasons for the losses are high fuel prices and shortage of aircraft. Fuel expenses increased by 12.8% to Rs 6,605.2 crore in the quarter. Additionally, aircraft and engine fares also increased four times, impacting financial results.

increase in total expenses

IndiGo’s total expenses increased by 22% to Rs 18,666.1 crore. This increase includes airport charges, aircraft fares and maintenance expenses.

market share

Despite this, IndiGo served 2.78 crore passengers in the September quarter and captured 63% market share in the country.

CEO’s statement

IndiGo CEO Peter Albers said that the company’s growth and expansion process is continuing, but 60 aircraft have been kept grounded due to problems related to parts supply chain and engine maintenance.

future prospects

Albers said the number of grounded aircraft has started to decline, which is expected to improve the company’s financial position.

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