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Indigo Reports Wider-Than-Expected Net Loss In Q4FY22 Results

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Interglobe Aviation which operates India’s largest airline IndiGo posted a wider-than-expected consolidated net loss of Rs 1,681.80 crore for the fourth quarter ended March 2022. The net losses widened due to a hike in aircraft fuel expenses.

In the same quarter last fiscal, the aviation company reported a net loss of Rs 1141.98 crore. 

A Bloomberg poll of analysts was expecting a quarterly net loss of Rs 978.30 crore on revenue of Rs 8.000.30 crore for the fourth quarter. 

Revenue of the aviation company was Rs 8,020.75 crore, up 29% from a year ago from Rs 6,222.95 crore booked in the same quarter last fiscal.

Interglobe Aviation attracted revenue from passenger tickets at Rs 6,884.70 crore, up 38.4%, while ancillary revenues amounted to Rs 1,058.30 crore, up 18.8% year-over-year. 

Fuel expenses added 68% more cost to the books. It amounted to Rs 3,220.58 crore in Q4FY22 as against Rs 1,914.46 crore in Q4FY21. While, total expenses increased 31.5% in the quarter under review. 

 Operating profit margin shrank sharply to 2.1% in Q4FY22 from 10.4% a year ago.

“This quarter has been difficult because of the demand destruction caused by the Omicron virus in the first half. 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”, said Ronojoy Dutta, CEO of Indigo.

Dutta further said that the company is best positioned to maximize 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”, the CEO added.

The airline’s fleet, consisting of 41 A320ceos, 143 A320neos, 56 A321neos, and 35 ATRs, operated a high of 1,577 daily flights, including non-scheduled flights, in the fourth quarter.

Re-emergence of air travel demand helped the company’s revenue from operations increase by 29% to 80.21 billion rupees. Passenger load factor, or the airline’s passenger carrying capacity being used, increased to 76.7%.

As of 31 March, IndiGo reported a total cash balance of Rs 18,227.5 crore, while the aviation company’s total debt (including the capitalized operating lease liability) was Rs 36,877.80 crore.

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Harshita Sharma

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