The country’s largest airline company Indigo has suffered a major setback. IndiGo, which is facing losses after seven quarters in the second quarter of financial year 2024-25, on Friday reported a net loss of Rs 986.7 crore in the September quarter due to grounding of aircraft and rising fuel costs. IndiGo, which has also become India’s first airline to have more than 400 aircraft, said its number of grounded aircraft has come down from the mid-70s to the high 60s, PTI reported. By the end of the year it will come below 60.
By the end of September there was a fleet of 410 aircraft
According to the news, IndiGo had a fleet of 410 aircraft till the end of September. In the September 2023 quarter, the airline’s profit stood at Rs 188.9 crore, up from Rs 188.9 crore in the year-ago period. IndiGo’s loss stood at Rs 746.1 crore in the second quarter of the current financial year. IndiGo CEO Peter Albers said the airline’s growth and expansion continued as its revenue grew 14.6 per cent year-on-year to Rs 17,800 crore in the second quarter. He said that the number of our grounded aircraft and the associated costs have started to decline. In the wake of Pratt & Whitney engine problems, the airline has grounded several aircraft.
The number of grounded aircraft will decrease
Gaurav Negi, chief financial officer of IndiGo, said the number of grounded aircraft will come down to less than 60 by the end of the year and 40 by the start of the next financial year. Albers said the tailor-made business class will be launched on the Delhi-Mumbai route and later, it will be available on 12 metro routes with a fleet of more than 40 aircraft. IndiGo will launch services to more international destinations this financial year.
Fuel cost increased by 12.8 percent
IndiGo said fuel costs rose 12.8 percent to Rs 6,605 in the second quarter. It increased to Rs 2 crore, whereas it was Rs 5,856 crore in the same period a year ago. Aircraft and engine fares increased to Rs 763.6 crore in the second quarter, compared to Rs 195.6 crore in the same period a year ago. Total expenses in the September quarter increased by almost 22 percent to Rs 18,666. It became Rs 1 crore. In the September quarter, the airline carried 27.8 million passengers, up nearly 6 percent from the same period a year earlier.
