New Delhi: Impacted by Omicron wave and higher fuel costs, budget carrier IndiGo’s net loss widened to Rs 1,681.8 crore in the quarter ending March 2022.
Indigo had reported a net loss of Rs 1,147.20 crore in the same quarter a year ago.
The airline’s net loss swelled despite revenue going up during the period under review. Total income of the company in January-March period of FY22 jumped 29 pc to Rs 8,207.5 crore as compared to Rs 6,361.80 crore in the corresponding period of the previous financial year.
The airline said its fuel cost ballooned 68 pc year-on-year in Q4FY22 to Rs 3,220.6 crore as compared to Rs 1,914.5 crore in the corresponding period last year.
Commenting on the quarterly result, IndiGo CEO Ronojoy Dutta said, “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.”
He further said that IndiGo 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,” added Dutta.
For the year ended March 2022, which was impacted first by ‘Delta’ wave and then by ‘Omicron’ wave, IndiGo reported a net loss of Rs 6,161.8 crore.
The airline had posted a net loss of Rs 5,806.4 crore in the financial year 2020-21 as Covid pandemic hit air traffic badly.
IndiGo had a total cash balance of Rs 18,227.5 crore comprising Rs 7,763.2 crore of free cash and Rs 10,464.4 crore of restricted cash as on March 31, 2022.