Budget carrier IndiGo on Wednesday reported its first-ever quarterly loss at Rs 652.10 for the second quarter ending September caused by higher fuel prices and a weaker rupee.
The carrier had posted a net profit of Rs 551.60 crore in the same quarter last year.
The company’s fuel costs during the quarter in consideration soared 84.30 per cent to Rs 3,035.50 crore, as compared to Rs 1,647.30 crore on this count in the corresponding quarter of last year.
With IndiGo flying more passengers during the quarter in question, company revenues, however, rose 17 per cent to Rs 6,185.13 crore, from Rs 5,290.98 crore in the same period a year ago.
IndiGo’s’cost per available seat kilometre jumped for the seventh quarter in succession by 24 per cent over the same period a year ago owing to a 41 per cent rise in aviation fuel prices and a 9 per cent depreciation of the rupee against the US dollar, the company said in a stock exchange filing.
Earnings before interest, tax, depreciation and amortization (EBITDA) as well as rental costs during the second quarter, plunged 93 percent to Rs 111 crore, mainly due to higher maintenance costs for the old A320neo aircraft in the company fleet.
“Aviation in India is facing significant pressures from high fuel costs, rupee depreciation and intense competition, all of which have impacted ourprofitability this quarter,” Indigo”s owner InterGlobe Aviation Interim CEO Rahul Bhatia said.
“Despite the difficult environment, IndiGo remains well positioned thanks to our low cost structure and strong balance sheet.”
The IndiGo stock closed on Wednesday at Rs 817.10 a share, up Rs 6.45, or by 0.80 per cent over its previous close on the BSE.