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IndiGo reported a 14.6% revenue increase year-over-year for Q2 FY24-25, reaching ₹177.590 Million. Despite the revenue boost, the airline recorded a net loss of ₹9.867 million, driven by high fuel costs and operational groundings. Here’s a comprehensive review of the quarter’s performance and insights from management.
IndiGo saw an 8.2% increase in capacity (ASK) and a 5.8% rise in passenger numbers during the quarter. However, high fuel costs and fleet groundings led to a net loss of ₹9.867 million, contrasting with last year’s Q2 profit of ₹1,889 million. The load factor was slightly down, but overall capacity and passenger numbers remained positive, reflecting strong demand.
Passenger Growth and Yield: IndiGo served 27.8 million passengers this quarter, a 5.8% increase compared to the same period last year, with yield up by 2.3% to ₹4.55 per kilometer.
Revenue Breakdown:
Cost Analysis:
Total expenses climbed to ₹186,661 million, a 21.9% increase from last year. This rise was largely due to a 12.8% increase in fuel costs and a 27.5% growth in other operational expenses.
IndiGo’s Q2 performance reflects the airline sector’s current trends, with high fuel costs impacting profit margins industry wide. IndiGo’s focus on boosting ancillary revenue helps counterbalance these pressures, aligning with broader industry efforts to diversify income sources and optimize costs.
IndiGo’s CEO, Pieter Elbers, reported a solid 14.6% revenue increase in Q2 FY24-25, reaching ₹178 billion, despite challenges from fleet groundings and high fuel costs. With grounded aircraft numbers now declining, IndiGo is poised to leverage growth opportunities in the Indian market, maintaining its position as a cost leader. Elbers highlighted the upcoming launch of IndiGo’s business class service and the positive response to the IndiGo BluChip loyalty program, thanking the “6E family” for serving 28 million customers this quarter.
Metric | Q2 FY24-25 (₹ Mn) | Q2 FY23-24 (₹ Mn) | YoY Change (%) |
Revenue from Operations | 169,696 | 149,439 | +13.6 |
Total Income | 177,590 | 155,029 | +14.6 |
Fuel Cost | 66,052 | 58,560 | +12.8 |
EBITDAR | 24,340 | 24,465 | -0.5 |
Profit/Loss After Tax | (9,867) | 1,889 | -622.3 |
IndiGo’s Q2 results showcase a robust revenue growth trajectory, countered by higher operational costs due to fuel price volatility. The airline's efforts to enhance service offerings, such as the upcoming business class and loyalty program, underline its commitment to driving value for customers and maintaining a competitive edge in the market.
Check out IndiGo’s past performances in previous quarters and financial years.
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