IndiGo, India's largest airline, posted a net loss of Rs 1,879.1 crore in the September quarter, PTI reported on Thursday, October 29. The result was announced by InterGlobe Aviation Ltd, the airline's operator, on the day brokerages had expected the September-quarter earnings.
Source: PTI via Dailyworld Newsalert
The loss was close to what brokerages had pencilled in before the results. InterGlobe was estimated to report a net loss of INR 18.46 billion (yaani Rs 1,846 crore) for the September quarter, according to the average of estimates from nine brokerages, Informist reported on October 28, adding that profits were hit by high fuel prices due to the war in West Asia and by cancellations that offset the benefits of airport fee rationalisation.
Source: Informist Media
Informist said the September-quarter loss would be sharply higher than the loss of INR 3.82 billion (yaani Rs 382 crore) reported for the June quarter, and that this would be the third consecutive quarterly net loss since the West Asia war started. Brokerage estimates for the loss had ranged from Rs 98.1 crore (Prabhudas Lilladher) to Rs 3,073 crore (Equirus Securities), while only Elara Securities expected a net profit, Informist reported.
Source: Informist Media
Aviation turbine fuel accounts for about 40% of an airline's operating costs and its price had risen nearly 25% over the previous three months, Upstox noted in its results preview. Investors were also watching management commentary under new CEO Willie Walsh, who took charge on August 3 succeeding Pieter Elbers, and passenger traffic and market share, Upstox said. Ahead of the results, IndiGo shares had closed 2% higher at Rs 4,690 on Wednesday, October 28, though the stock was down over 7% so far this year, Upstox reported.
Source: Upstox
Brokerages had estimated InterGlobe's net revenue from operations for the September quarter to rise over 23% on year to about INR 229 billion (yaani about Rs 22,900 crore), Informist reported — a reminder that the loss came even as the top line grew, with fuel and disruption costs outrunning higher airfares.
Source: Informist Media