IndiGo April-June Net Profit Drops 21% On Year On Higher Costs, Weak Yield

InterGlobe Aviation Ltd., which operates IndiGo, reported a nearly 21% on-year fall in net profit to ₹21.61 billion for the June quarter, as expenses outpaced revenue growth. Revenue rose just 5% to ₹204.96 billion, marking its slowest growth in four years.

The airline's operating costs surged: depreciation and amortisation expenses rose 37% to ₹25.53 billion, while other expenses jumped 23% to ₹21.79 billion. Aircraft fuel costs dropped over 9% to ₹58.33 billion, with fuel cost per available seat kilometre falling 22% to ₹1.38.

Load factor declined 2.1 percentage points to 84.6% and yield fell 5% to ₹4.98/km, despite a 16% rise in capacity and 12% increase in passengers flown.

EBITDAR fell over 1% on year to ₹57.39 billion, with margin narrowing to 28% from 29.7%. The airline operated 416 aircraft as on Jun. 30, down by 18 from the previous quarter. Total debt stood at ₹684.88 billion, while total cash balance was ₹494.06 billion.