IndiGo Q4 results: Loss widens to Rs 1,682 cr on higher fuel costs

The company's consolidated revenue from operations rose 29% to Rs 8,021 crore in Q4FY22

InterGlobe Aviation, which operates flights under IndiGo brand, on Wednesday reported that its consolidated loss widened to Rs 1,682 crore for the quarter ending March 31, 2022 as higher fuel costs more than offset a rebound in demand for air travel. It reported consolidated loss of Rs 1,147 crore in the year-ago period when a raging pandemic kept people at home. Fuel prices in Q4 of 2021-22 increased by 61% compared to the same period last year, the airline said.

However, the resurgence in air travel demand helped the company's consolidated revenue from operations jump 29% to Rs 8,021 crore in Q4FY22 as against Rs 6,223 crore in Q4FY21. 

On Wednesday, IndiGo's scrip on BSE closed 2% lower at Rs 1,648. 

After two years of pandemic-curtailed travel, airlines globally have made a comeback in recent months riding on a wave of pent-up demand that has encouraged them to bump up capacity.

But the industry's recovery faces risks from a surge in global jet fuel prices, which neared 14-year highs in the quarter after the Russian invasion of Ukraine.

"Although traffic rebounded and demand was robust during the latter half of the quarter, we were challenged by high fuel costs and a weakening rupee," IndiGo CEO Ronojoy Dutta said in a 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 noted. InterGlobe's aircraft fuel expenses soared 68.2% to Rs 3,221 crore in the period, while total expenses surged 31.5%.

IndiGo's load factor (occupancy rate) in the quarter ending March was 76.7% as compared to 70.2% recorded in quarter ending March during the last year, it said. Yields, a metric of profitability, increased 19.2% to Rs 4.40.

With inputs from Agencies