IndiGo reports Q2 FY2025 results

InterGlobe Aviation Ltd (IndiGo) has announced its financial results for the second quarter of fiscal year 2025, reflecting a total income of Rs 177.6 billion, marking a 14.6 per cent increase year-over-year. However, the airline also reported a net loss of Rs 9.9 billion, primarily attributed to higher fuel costs and a peak number of aircraft groundings.

Key financial highlights:

Revenue from Operations increased by 13.6 per cent to Rs 169.7 billion. The total income rose 14.6 per cent to Rs 177.6 billion, with passenger ticket revenue increasing by 9.9 per cent and ancillary revenue growing 20.9 per cent. Whereas the net loss was reported at Rs 9.9 billion, down from a net profit of Rs 1.9 billion in Q2 FY2024. EBITDAR was slightly decreased to Rs 24.3 billion (14.3 per cent margin), compared to Rs 24.5 billion (16.4 per cent margin) in the previous year.

Operational ,etrics:

The capacity grew by 8.2 per cent to 38.2 billion ASKs. Passengers carried increased by 5.8 per cent to 27.8 million, whereas, yield rose by 2.3 per cent to Rs 4.55, although load factor declined to 82.6 per cent.

Cost overview:

The total expenses were reportedly increased by 21.9 per cent to Rs 186.7 billion. Fuel costs rose by 12.8 per cent, while other expenses excluding fuel increased by 27.5 per cent.

Cash and debt position:

As of September 30, 2024, IndiGo's cash balance totalled Rs 393.4 billion, comprising Rs 243.6 billion in free cash. Total debt, including the capitalised operating lease liability, reached Rs 592.4 billion.

Pieter Elbers, CEO, IndiGo, said, “IndiGo’s growth and expansion continued as our topline grew by 14.6 per cent on a year over year basis, in the second quarter to 178 billion rupees. In a traditionally weaker second quarter, results were further impacted by headwinds related to groundings and fuel costs. We have turned the corner as the number of grounded aircraft and associated costs have started reducing."

He further added, "We continue to capitalise on the growth of the Indian market and associated opportunities and at the same time remain a cost leader in this competitive market. It marks a proud moment for us as we launch our business class two weeks from now and offer a new experience to our customers. We are receiving positive response to our recently launched loyalty rewards programme – IndiGo BluChip. I would like to extend my gratitude to our 6E family for their continuous efforts in making IndiGo India’s preferred airline and courteously serving 28 million customers during the quarter.”

Moving forward, the airline expects a double-digit capacity growth for the third quarter compared to the same period last year.