Interglobe Aviation, which operates India’s largest airline Indigo, posted its September quarter (Q2FY22) results on Thursday, 28 October 2021.
The company's consolidated revenues stood at ₹5,608 crore, up nearly 105% year-on-year. Revenues have grown but profitability is still under pressure. Due to rising fuel prices, the company’s net loss widened to ₹1,435 crore, rising by 20% year-on-year.
The price of crude oil has been going up steadily and its impact was seen on aviation fuel prices. While revenues doubled, fuel costs have tripled. Aircraft fuel expenses now amount to 35% of the company’s revenue, which was around 23% in the same quarter last year.
Meanwhile, despite pandemic-led disruptions, the company's liquidity position is almost intact. It has a total cash balance of over ₹16,000 crore.
According to management, the airline's carrying capacity in terms of average seat kilometres (ASK) is expected to increase by 40% in the December quarter as compared to September quarter.
In the current financial year, Interglobe Aviation’s share price has risen by 22%. The Nifty50 index has also risen by almost 22%, which shows that the stock has performed in line with the broader markets.