IndiGo reports wider Q2 loss but flies past estimates; revenue doubles

Budget airline IndiGo has reported higher losses for the second quarter as fuel cost rocketed, but posted earnings and revenue numbers ahead of street estimates.

InterGlobe Aviation, the company that runs IndiGo, posted a consolidated net loss of Rs 1,435.7 crore for the three months ended September 30, up 20% over last year. However, loss more than halved from the first quarter when it had shot up to Rs 3,174.2 crore.

Revenue rose 104.6% to Rs 5,608.5 crore from a year earlier and up 86.5% from the first quarter.

Analysts were expecting the net loss to be in the region of Rs 1,700-1,800 crore during the quarter, largely due to the sharp rise in fuel costs. Revenues were estimated to rise to Rs 5,000-5,200 crore.

IndiGo’s share price declined 0.64% to close at Rs 1,996.8 apiece in a weak Mumbai market on Thursday.

IndiGo Q2: Other highlights

1) Passenger ticket revenues jumped 114% to Rs 4,716.3 crore; ancillary revenue rose 61.45 to Rs 817.7 crore.

2) Fuel cost tripled to Rs 1,989.4 crore from Rs 646.4 crore in Q2 last year. On a sequential basis, fuel cost rose 63.6%.

3) IndiGo recorded EBITDAR of Rs 340.8 crore versus Rs 408.5 crore a year earlier.

4) EBITDAR margin narrowed to 6.1% from 14.9% for the same period last year.

5) Revenue per available seat rose 11.3% to Rs 36 lakh year on year and 32.1% over Q1.

6) Available seat capacity in Q3 is expected to increase around 40% as compared to Q2 and around 45% YoY.

Management Speak

IndiGo CEO Ronojoy Dutta said the pace of revenue recovery is encouraging. “We continue to work towards return to profitability in order to strengthen our balance sheet,” he said.

“With a modern fleet, dedicated employees and a stronger economic environment we are well positioned to leverage all the growth opportunities around us,” Dutta added.