IndiGo parent Interglobe Aviation has reported its first-quarter profit on Friday which has declined 11.7 percent due to the higher expenses which overshadowed strong air travel demand. As India's largest airline by market share, it posted a profit of INR 2,727 crore (USD 326 million) for the three months which ended in June 30. A year earlier, the figure stood at INR 3,087.
Furthermore, costs for Indian airlines are expected to witness an upsurge of 3.8% in fiscal 2025 as per the top aviation consultancy.
With aircraft fuel expenses accounting for about 37% of the costs. Its aircraft rental costs more than tripled, the airline’s total expenses in the first quarter saw a rise of about 24% to INR 17,449 crore.
And, if we compare with a gain of INR 116 crore a year earlier, Interglobe Aviation also reported a foreign exchange loss of INR 575 million in the quarter.
IndiGo's Revenue from operations Grew 17.3% to INR 19,571 Crore
Available seat kilometers, which is a measure of the airline's passenger carrying capacity has surged to 11.1%, which can be compared with a company’s estimate of 10%-12% growth. Additionally, for capacity in the second quarter, the low-cost carrier forecast high single-digit percentage growth.
