IndiGo's Q1 Earnings Dip Amid Rising Fuel Costs

IndiGo reported a 12% drop in profit after tax for Q1 at ₹2,728.8 crore due to higher fuel and other expenses. Despite a significant rise in total income by 18%, the surge in expenses, particularly fuel costs, impacted the bottom line. CEO Pieter Elbers expressed satisfaction over the financial performance.

The country's largest airline IndiGo on Friday posted a nearly 12 per cent decline in profit after tax at ₹2,728.8 crore for the three months that ended in June, as higher fuel and other expenses took a toll on the bottom line.

While total income surged by 18 per cent to ₹20,248.9 crore in the first quarter of the current financial year, overall expenses, primarily driven by escalating fuel costs, jumped 24 per cent to ₹17,444.9 crore.

In the June 2023 quarter, IndiGo's parent company InterGlobe Aviation had a profit after tax of ₹3,090.6 crore. Excluding the foreign exchange impact, the profit after tax in the latest June quarter stood at ₹2,786.3 crore, according to a release.

Total income in the year-ago period was ₹17,160.9 crore. The airline's total expenses soared by 24 per cent to ₹17,444.9 crore, with fuel costs rising 22.7 per cent to ₹6,416.5 crore in the three months ended June 2024.

A year ago, total expenses were at ₹14,070.2 crore. Aircraft and engine rentals also increased to ₹624.1 crore in the latest June quarter from ₹194.6 crore in the previous year. The load factor, indicating seat occupancy, dropped to 86.7 per cent in the quarter under review from 88.6 per cent a year ago.

IndiGo CEO Pieter Elbers remarked, “I am pleased to report another strong quarterly financial performance for the first quarter of financial year 2025. A continued growth in total income of 18 per cent as compared to the same period last year to ₹202.5 billion and a net profit of ₹27.3 billion, resulting in a solid margin of around 14 per cent.”

At the end of June, the airline operated 382 planes, including 18 aircraft on wet lease. Shares of the company gained 1.37 per cent to close at ₹4,491.25 per piece on the BSE.