IndiGo suffers a big blow, losses of ₹986 crores in Q2, know the reason

indigo Airlines / IndiGo suffers a big blow, losses of ₹986 crores in Q2, know the reason

indigo Airlines - IndiGo suffers a big blow, losses of ₹986 crores in Q2, know the reason

indigo Airlines: The country's largest airline company Indigo has suffered a major setback in the second quarter of the financial year 2024-25. After seven quarters, the company has reported huge losses. Indigo suffered a net loss of Rs 986.7 crore in the September quarter, the main reason for which is being attributed to rising fuel costs and increasing number of grounded aircraft.

Indigo's grounded aircraft problem

According to a PTI report, Indigo currently has a fleet of 410 aircraft, out of which many aircraft are grounded due to engine problems. The company has kept several aircraft out of flight service due to Pratt & Whitney engine problems. Due to this, Indigo CEO Peter Albers said that this number is gradually decreasing. The company plans that the number of grounded aircraft will come down to below 60 by the end of the year, and this number will come down to 40 in the next financial year.

Impact of rising costs

Fuel costs rose significantly by 12.8 per cent in the quarter, taking the cost to Rs 6,605.2 crore from Rs 5,856 crore in the same period last year. Aircraft and engine rentals also saw a huge increase, rising from Rs 195.6 crore a year ago to Rs 763.6 crore in the quarter. Overall, the airline's operating expenses rose 22 per cent to Rs 18,666.1 crore.

IndiGo's expansion and new routes

IndiGo's profit was Rs 188.9 crore in the same quarter a year ago. However, a loss of Rs 746.1 crore was recorded in the second quarter of the current financial year. Despite this, IndiGo is continuing its expansion. The company's CEO Albers said that IndiGo is planning to start new routes and services, which will include specially designed business class services on domestic routes. The service will first launch on the Delhi-Mumbai route and will later be available on 12 metro routes with a fleet of over 40 aircraft.

Increase in passenger numbers

Despite the losses, IndiGo recorded a good growth in passenger numbers. The company carried 27.8 million passengers in the September quarter, up nearly 6 per cent from a year ago. IndiGo also plans to launch new services to several international destinations in the coming months.

Challenges and prospects ahead for IndiGo

IndiGo is facing financial pressure due to rising fuel costs and aircraft fares. The company is focused on increasing its operational efficiency and reducing the number of grounded aircraft. In the coming months, IndiGo aims to expand on domestic and international routes and further increase business class service, which will give it new revenue streams.