Mumbai – In a significant setback for India’s leading low-cost carrier, IndiGo, the airline reported a staggering net loss of Rs 986 crore in the second quarter (Q2) of FY25, a sharp decline from the net profit of Rs 188 crore recorded in the same period last year. The announcement was made on Friday, October 25, by InterGlobe Aviation Ltd, the parent company of IndiGo. The financial downturn is primarily attributed to soaring fuel prices and a peak in grounded aircraft, which the airline has indicated are now beginning to decrease. During the quarter ending September 30, IndiGo’s total expenses surged to Rs 18,666 crore, marking a 21.9 percent increase compared to the previous year.
Despite the financial losses, IndiGo's total income for the quarter rose to Rs 17,760 crore, reflecting a year-over-year increase of 14.6 percent. This growth is notable in a traditionally weaker second quarter, where the airline’s capacity grew by 8.2 percent to 38.2 billion, and passenger numbers increased by 5.8 percent, reaching 27.8 million. IndiGo CEO Pieter Elbers expressed cautious optimism regarding the company’s growth trajectory. He stated, “Our topline grew by 14.6 percent on a year-over-year basis. In a traditionally weaker second quarter, results were further impacted by headwinds related to groundings and fuel costs.
We have turned the corner as the number of grounded aircraft and associated costs have started reducing.” Elbers emphasized the company’s commitment to capitalizing on the growth opportunities within the Indian market while maintaining a competitive edge as a cost leader. According to data from the Directorate General of Civil Aviation (DGCA), India's domestic air passenger traffic surged to 11.84 crore in the first nine months of the year, compared to 11.28 crore during the same timeframe last year. IndiGo has maintained a commanding market share, carrying over 7.25 crore passengers, which accounts for 61.3 percent, while Tata Group's Air India followed with more than 1.64 crore passengers and a market share of 13.9 percent. The airline’s challenges amidst a recovering industry signal a crucial juncture for IndiGo as it strives to navigate rising operational costs while remaining the frontrunner in India’s competitive aviation landscape.
