BENGALURU: InterGlobe Aviation, operator of India’s largest airline IndiGo, reported a big loss for the fourth quarter on Wednesday as fuel costs more than offset a rebound in air travel demand.
After two years of pandemic-cut travel, airlines globally have bounced back in recent months, riding on a wave of demand that has encouraged them to ramp up capacity.
But the industry’s recovery faces risks from rising global jet fuel prices, which rose to a 14-year high in the quarter following the Russian invasion of Ukraine.
“Although traffic picked up in the latter half of the quarter and demand was strong, we were challenged by higher fuel costs and a weaker rupee,” the chief executive officer said. Ronojoy Dutta said in a statement.
InterGlobe’s aircraft fuel expenses rose 68.2% to Rs 3,221 crore ($415.31 million) during the period, while overall spending rose 31.5%.
Net loss stood at Rs 1,680 crore for the three months ended March 31, as against Rs 1,159 crore a year ago.
However, resurgence in demand for air travel helped revenue from operations jump 29% to Rs 8,021 crore. The passenger load factor, or passenger carrying capacity being used, increased to 76.7%.
Yield, a metric of profitability, rose 19.2% to Rs 4.40.
After two years of pandemic-cut travel, airlines globally have bounced back in recent months, riding on a wave of demand that has encouraged them to ramp up capacity.
But the industry’s recovery faces risks from rising global jet fuel prices, which rose to a 14-year high in the quarter following the Russian invasion of Ukraine.
“Although traffic picked up in the latter half of the quarter and demand was strong, we were challenged by higher fuel costs and a weaker rupee,” the chief executive officer said. Ronojoy Dutta said in a statement.
InterGlobe’s aircraft fuel expenses rose 68.2% to Rs 3,221 crore ($415.31 million) during the period, while overall spending rose 31.5%.
Net loss stood at Rs 1,680 crore for the three months ended March 31, as against Rs 1,159 crore a year ago.
However, resurgence in demand for air travel helped revenue from operations jump 29% to Rs 8,021 crore. The passenger load factor, or passenger carrying capacity being used, increased to 76.7%.
Yield, a metric of profitability, rose 19.2% to Rs 4.40.