India’s largest airline IndiGo reported a widening of loss to ₹1,681 crore for the quarter ended March 31 from the ₹1,147-crore loss a year earlier, on soaring fuel costs, the impact of the Omicron wave and a weakening rupee.
The carrier had reported its first profit in seven quarters in the October-December period on the back of improving passenger numbers.
IndiGo also recorded a widening of loss to ₹6,161 crore for FY22, compared with a loss of ₹5,806 crore in the previous year.
The airline saw a 62.3% increase in passengers in FY22 compared with the last year. But fuel prices, which constitute almost 40% of an airline’s operating cost, rose 71.6% in the period.
At the end of FY22, IndiGo had total cash balance of ₹18,227 crore, including ₹7,763 crore free cash. Total debt stood at ₹36,877 crore, including lease liabilities of ₹31, 665 crore.
“This quarter has been difficult because of the demand destruction caused by the Omicron virus in the first half,” said CEO Ronojoy Dutta. “Although traffic rebounded and demand was robust during the latter half of the quarter, we were challenged by high fuel costs and a weakening rupee,” he added, pointing out that the airline was focussed on maintaining its cost leadership position as well as building the most efficient network in the region.
