IndiGo’s Q2 loss widens on pricier fuel, rupee fall

The country’s largest airline with around 58% domestic market share, however, said it expects an operationally profitable third and fourth quarter of the fiscal if fuel price and exchange rate remain in control.

IndiGo’s revenue from operations more than doubled to ₹12,497.6 crore for the second quarter from ₹5,608.5 crore in the year-ago period as more people are travelling.

“This is the second consecutive quarter wherein we have operated at higher than pre-Covid capacity,” IndiGo CEO Pieter Elbers said. “In spite of a seasonally weak quarter, we witnessed relatively good yields with strong demand across the network. However, fuel prices and exchange rates have adversely impacted our financial performance,” he said.

The airline said it is witnessing healthy momentum in traffic flow in the festival and holiday season and a simultaneous rise in share of corporate traffic, which it believes will help it to return to profitability.

“Festive season and strong pick-up in corporate business is leading to a strong build in revenue number,” IndiGo chief strategy and revenue officer Sanjay Kumar said.

Despite an increase in traffic, the airline is challenged to deploy sufficient capacity due to a global supply chain shortage. IndiGo, though, has maintained capacity guidance of 13-17% capacity growth in seats as originally envisaged for 2022-23.