IndiGo Q1 results: Net loss narrows to Rs 1,064 cr; revenue surges 328%

'While our financial performance in the second quarter will be challenged by weak seasonality, the long-term revenue trend remains strong,' says airline's CEO

InterGlobe Aviation, which operates IndiGo airline, on Wednesday said its net loss narrowed to Rs 1,064.3 crore for the quarter ended June 30, 2022. It reported net loss of Rs 3,174.2 crore in the year-ago period. 

The airline's revenue from operations rose 328% to Rs 12,855.3 crore from Rs 3,007 crore in the year-ago period. 

On Wednesday, the company's scrip on BSE closed 1.2% higher at Rs 1,967. 

CEO Ronojoy Dutta said, "Our revenue performance this quarter was impressive. We reported the highest ever revenue generated by the company and thereby 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."

Yields, a metric of profitability, rose 50.3% to Rs 5.24 per kilometre, while passenger load factor, or the passenger carrying capacity being utilised, increased to 79.6% from 58.7% for the first quarter ended June 30.

The results come as IndiGo has seen a churn at the top, while reports of an exodus of its ground crew and technicians to other airlines have also been doing the rounds.

IndiGo expects a jump of about 70%-80% in capacity in available seat per kilometre in the current quarter from the same period a year earlier.

Although demand has picked up, high fuel costs and inflation have emerged as big concerns for airlines.

As of June 30, 2022, the airline had a fleet of 281 aircraft including 35 A320 CEOs, 146 A320 NEOs, 65 A321 NEOs and 35 ATRs, a net increase of 6 aircraft during the quarter.

IndiGo operated at a peak of 1,667 daily flights during the quarter, including non-scheduled flights.

IndiGo said it had an on-time performance of 85.5% at four key metros and flight cancellation rate of 0.61%. The airline's debt quarter as of June quarter-end was Rs 39,278 crore.