IndiGo reports first loss since listing amid high fuel cost, weaker rupee
The company’s co-founder and interim CEO Rahul Bhatia said aviation in India is facing significant pressure from high fuel costs, rupee depreciation and intense competition.Updated: Oct 24, 2018 19:48 IST
InterGlobe Aviation Ltd, which owns Indigo, on Wednesday reported its first quarterly loss since its listing on the stock market and said high fuel cost, rupee depreciation and intense competition significantly impacted its profitability.
Interglobe Aviation posted a net loss of Rs 6,521 million and Earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) of Rs 2,204 million for the quarter ended September 2018.
“Revenue from operations of INR 61,853 million for the quarter ended September 2018 is an increase of 16.9% compared to the same period last year. Net loss of INR 6,521 million for the quarter ended September 2018 is compared to a net profit of INR 5,516 million for the same period last year,” IndiGo, India’s largest airline by market share, said in a statement.
“Higher fuel price is responsible for more than half of the profitability decline; remainder due to currency depreciation and lower yields,” the low-cost carrier said.
The company’s co-founder and interim CEO Rahul Bhatia said aviation in India is facing significant pressure from high fuel costs, rupee depreciation and intense competition.
“Despite this difficult environment, IndiGo remains well-positioned thanks to our low-cost structure and strong balance sheet. Along our journey to build the leading nationwide air transport network, we added 20 aircraft this quarter, entered an additional 5 cities and started 35 new routes. We now fly over 100 daily departures from each of the six metros,” Bhatia said.