Budget airline IndiGo reported the highest-ever quarterly revenue of ₹13,000 crore for the first quarter as demand for travel returned and airlines raised fares. But high ATF prices as well as a depreciating rupee led the carrier into reporting a net loss of ₹1,064 crore.
The airline saw passenger numbers more than triple while total income surged more than fourfold to ₹13,018 crore, including revenue from tickets which grew more than fourfold to to ₹11,466 crore in the first quarter of FY23 over the year-earlier period.
Total expenses for the quarter more than doubled to ₹14,083 crore with fuel costs increasing almost fivefold.
IndiGo CEO Ronojoy Dutta hinted that high airfares were here to stay. “We [industry] have raised prices a lot, pushed by cost pressure from fuel. The other factor is that we were starting from an abnormally low point so we have to go up. As we increase prices, there is a little bit of resistance. We don’t see resistance from corporate [travellers] or tourists, but the most price-sensitive segment. That explains the 7% decline in passenger load factor. As we go into the third quarter, when demand recovers and as people get used to higher airfares, we will get those 7% back,” Mr. Dutta said during a post-result analyst’s call.