The parent company of low-cost carrier IndiGo, Interglobe Aviation, announced a financial loss of Rs. 1,583.33 crore on November 4 for the first half of the fiscal year 2022–23.
In comparison to Q2 FY22, when it was Rs 1,435.65 crore, and to the first quarter of the current fiscal year, when it was Rs 1,064.26 crore, the net loss in Q2 FY23 was higher and much wider.
In the September 2022 quarter, IndiGo’s operating revenue increased to Rs 12,497.58 crore, a 122 percent increase over the Rs 5,608.49 crore recorded in the same time the previous year.
In comparison to an EBITDAR of Rs 340.8 crore (6.1 percent margin) in the same quarter of the previous fiscal, the company reported an EBITDAR of Rs 229.2 crore with a margin of 1.8 percent.
In a news statement, IndiGo stated that its capacity had expanded by 75%. It also stated that the passenger count increased by 75.9% year over year to 19.7 million.
“Yield improved by 21.0 percent to Rs 5.07 and load factor improved by 8 points to 79.2 percent,” the company said.
The airline’s overseas operations have “risen by 20 percent,” according to IndiGo CEO Pieter Elbers.
“Pricing discipline in domestic market in India helped revenues in Q2 which is a seasonal weak quarter,” Elbers added.
Gaurav Negi, the carrier’s chief financial officer, stated that they anticipate a 25% year-over-year increase in passenger load in Q3 FY23.
However, Elbers noted both rupee depreciation and high ATF prices are “major headwind for IndiGo’s growth going forward.”