IndiGo reports a net loss of ₹986 crore in Q2FY25 as groundings and costs rise; shares fall 12%

The company reported a net loss excluding foreign income of ₹746.1 crore compared to a net profit of ₹806 crore in the same period last year.

Interglobe Aviation’s earnings before interest, taxes, depreciation, and rent costs (EBITDAR) were down 0.5% YoY to ₹2,434 crore.

The company’s average seat kilometer (ASK) for the quarter was up 8.2% YoY to 38.2 billion. The revenue passenger kilometer (RPK) was up 7.4% YoY to 31.6 billion. The company’s load factor for the quarter declined by 0.6 basis points to 92.6% while the total number of passengers was up 5.8% YoY to 27.8 million.

The revenue per available seat kilometer (RASK) rose by 4.8% YoY to ₹4.45. Meanwhile, the yield climbed 2.3% YoY to ₹4.55 per kilometer.

In Q2FY25, Interglobe Aviation’s total costs jumped 21.9% YoY to ₹18,666.1 crore. During the quarter the cost per available seat kilometer (CASK) was up 11.8% YoY to ₹4.69 while the CASK excluding fuel and forex grew by 22.8% YoY to ₹2.90.

The company reported that it expects a rise in ASKs by double digits on a YoY basis in Q3FY25.

Pieter Elbers, chief executive officer of Interglobe Aviation stated that the company saw revenue growth during the quarter however grounding and higher costs impacted profitability. The company will continue to capitalise on the growing Indian market and is launching its business class offering in two weeks.

“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 said.

Shares of the company have risen by nearly 28% since the beginning of the year. The stock has gained over 53% in the past year.