India's IndiGo narrows quarterly loss on pricing actions
- InterGlobe Aviation cut its second-quarter loss, implementing pricing strategies to counter persistent high fuel costs
IndiGo parent InterGlobe Aviation on Thursday posted a smaller second-quarter loss as India’s top airline undertook pricing actions to offset rising fuel costs.
The company reported a loss of 20.55 billion rupees ($215.73 million) in the quarter ended September 30, CEO Willie Walsh’s first after he took over as the company’s head in August this year, from a loss of 26.14 billion rupees in the year-ago period.
Indian airlines have been leaning on tighter cost controls and pricing actions to offset elevated fuel expenses in an otherwise seasonally softer travel period. Travel demand typically moderates in the quarter, situated after the peak summer season and before the onset of festive travel.
Revenue jumped about 26% to 233.64 billion rupees while expenses rose 19.2% to 263.57 billion rupees.
Costs related to aircraft fuel accounted for about 37.8% of the total expenses.
In October, the company said it would increase its fuel charges on domestic and international routes, following a similar increase in April. This is expected to ease pressure on margins.
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Indigo had also said earlier it would evaluate whether to hedge fuel prices following the sharp increase in jet fuel costs, although the carrier is yet to announce a formal hedging programme.