India’s largest domestic carrier, IndiGo, narrowed down losses to ₹1,064 crore for the quarter ended June 30, 2022. The firm’s net loss was due to headwinds caused by the depreciating rupee and higher fuel prices. Losses were down 66 per cent over the corresponding quarter last fiscal (₹3,174 crore).

However, revenue from operations increased 328 per cent y-o-y to ₹12,855 crore (₹3,007 crore) — the company’s highest-ever quarterly revenue.

IndiGo saw an increase in the number of passengers by 221.9 per cent compared to the same period last year. Further, the airline’s total income came in at ₹13,018.80 crore for the quarter, the highest ever. Fuel prices rose 95.5 per cent y-o-y.

Cost pressures

Ronojoy Dutta, CEO, sad the revenue performance was impressive and the company produced profits at an operational level. “However, cost pressures on fuel and foreign exchange prevented us from translating this strong revenue performance into net profitability. While our financial performance in the second quarter will be challenged by weak seasonality, the long-term revenue trend remains strong,” he said.

As of June 30, IndiGo had a total cash balance of ₹19,069 crore, which include ₹8,304 crore of free cash and ₹10,765 crore of restricted cash. “Q2 capacity in terms of ASKs is expected to increase by around 70-80 per cent, as compared to the year-ago period,” said a company statement.