May 26—NEW DELHI — InterGlobe Aviation, which operates IndiGo, on Wednesday said its consolidated losses widened to INR1,682 crore in the March quarter on the back of rising fuel costs, a depreciating rupee, and a covid-induced fall in demand in early January.
Indigo had posted losses of INR1,147.16 crore in the year-ago period, but reported a consolidated profit of INR129.79 crore in the October-December period after nearly two years.
In the quarter ended March, IndiGo's revenue was up by 9% from the year-earlier to INR8,207 crore. However, expenses rose 31.5% from the year-earlier to INR9,884 crore, which included a 68.2% increase in fuel cost of INR3,220.58 crore.
IndiGo's result did not meet street estimates. A Bloomberg poll had estimated the airline's loss at about INR900 crore in the March quarter, on the back of a revenue of INR8,000 crore.
With crude oil prices rising by 48% in the past 12 months, following the Russia- Ukraine war, jet fuel costs have surged to a record high in India.
"This quarter was difficult because of demand destruction caused by Omicron virus in the first half. Although traffic rebounded and demand was robust in the latter half, we were challenged by high fuel costs and a weakening rupee," Indigo chief executive Ronojoy Dutta said in a post-result statement.
"We believe IndiGo is best positioned to maximise revenue in a recovering market. As we work to return the airline to profitability, we are focused on maintaining our cost leadership position and continuing to build the most efficient network in the region," he added.
For the year ended 31 March IndiGo reported consolidated net losses of INR6,161 crore, up from INR5,806 crore loss in FY21. Revenue in FY22 rose 70% on an annual basis to INR26,656.53 crore. IndiGo's net debt rose 23.5% annually to INR36,877.80 crore at the end of FY22. During the period, the airline's cash balance fell by about 2% to INR18,227.50 crore.
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