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IndiGo reportedly recorded a larger loss in the second quarter if financial revenues, revenues from the sale and leaseback of aircraft and offsetting the engine problems that led to the loss. Grounding Airbus A320neo Airliners Photo: Mint
Mumbai: InterGlobe Aviation Ltd, which operates the largest Indian airline, IndiGo, has recorded a quarterly loss since its stock market release, due sharp rise in fuel prices IndiGo recorded a loss of Rs 652.13 crores in the second quarter of September (compared to a profit of Rs 551.56 crores a year ago.
InterGlobe Aviation was listed on the Stock Exchange in November 2015. [19659004] IndiGo also suffered from lower yields and unfavorable exchange rate movements during the quarter.
Rising fuel prices and rupee weakening have inflated the operating costs of the Indian carriers, which have been added to the misfortune of the airlines.they are denominated in dollars.In the last year, the gross reference Brent has progressed d e 33.3% to 76.48 dollars a barrel, while the rupee is weakened by 11.1% to 73.16 for a dollar.
Total business turnover increased 18% year-on-year to reach Rs.5,514.20 in the second quarter. as he was carrying more pbadengers. Traffic growth has been at the expense of returns, as intense competition has limited its ability to raise fares sufficiently to cover additional costs.
IndiGo, one of the largest global customers of Airbus SA, reportedly recorded a larger loss in the second quarter. these are not the financial products, the proceeds from the sale and lease-back of aircraft, nor the compensation of engine problems that led to the grounding of Airbus A320neo airliners equipped with Pratt & Whitney engines. Other income jumped 53% year-on-year to 328.9 crore rupees in the second quarter.
IndiGo's total expenses jumped 58% in the September quarter to reach 7,502 crore. Fuel expenses climbed 84% in September to 3,035 crore. It also suffered a foreign exchange loss of 335.4 million crore during the quarter.
Indian aviation is under considerable pressure due to high fuel costs, rupee depreciation, and intense competition, all of which have affected our profitability this quarter, co-founder of IndiGo. The acting executive director, Rahul Bhatia, said in a statement.
IndiGo transported 14.54 million pbadengers on domestic routes in September, compared to 11.04 million pbadengers a year earlier, according to government data.
) during the window of 0-15 days remains low, which has been accentuated due to the increase in capacity, "said Greg Taylor, senior advisor of IndiGo, in an appeal to badysts to discuss profits
Indian airlines earn more money with reserved tickets 15 days before the date of travel as they normally cost more than those booked several months in advance.
The company has adopted various initiatives to increase efficiency and reduce transportation costs. L reduce weight (on flights) and improve navigation and landing procedures, said CFO , Rohit Phillip, during the call.indiGo attends an acceleration of delivery of A320neo aircraft, which had already been delayed by Airbus due to engine problems, said Phillip .He currently has a fleet 189 planes, including 50 A320neos.
For the future, IndiGo plans to launch more international flights in the coming quarters in order to exploit this lucrative market and offset the pressure on prices in its home market , India. The new flights, however, would be within reach of its current fleet of A320 family aircraft.
"Long-haul international long-haul flights remain an aspiration (for IndiGo)," Taylor said.
IndiGo, However, it is not expected to use its cash reserves to order more aircraft in the coming quarters, Phillip said. IndiGo had a cash balance of about Rs. 13,164 crore and a net debt of about 2,641 crore at the end of September.
At the same time, Bhatia said that IndiGo would prefer to develop its business in an organic way when badysts asked him if the airline would be interested. acquisitions, especially in the sector burdened by high costs.
"However, if something very positive came up, we would consider it," he added.
On Wednesday, InterGlobe Aviation shares rose 0.80% or £ 6.45 Senbad gained 0.55%, or 186.73 points, to end the day at 34,033.96 points
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