Thursday, October 28, 2021

Interglobe Aviation posts bigger quarterly loss as fuel expenses soar

 Bengaluru: Interglobe Aviation Ltd, which operates India’s biggest airline, reported a bigger quarterly loss on Thursday as higher fuel expenses eclipsed a rebound in travel demand.

Rocketing fuel prices pose a serious threat to the recovery in India’s pandemic-battered aviation industry, in line with U.S. peers that have also said a complete return to profit may be delayed as higher prices overshadow strong demand.

Interglobe’s aircraft fuel expenses in the quarter soared 19.89 billion rupees in the reported quarter, the company said.

Still, revenue from operations rose 104.6% as COVID-19 vaccination rates picked up and the government eased most air travel-related curbs.

Regulatory data shows passenger growth across airlines jumped 136.6% in August and 79.2% in September compared to last year, and some 7.07 million passengers flew in September, compared to 6.7 million in August.

IndiGo’s net loss widened to 14.40 billion rupees ($192.32 million) in the three months to Sept. 30, from 11.95 billion rupees a year earlier. The airline, which has reported losses since 2020, said it expects passenger traffic and revenue environment to continue to improve.

28/10/21 Reuters/Indian Express

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