DALLAS — IndiGo (6E), operated by Interglobe Aviation, announced its financial results for the first quarter of the fiscal year (Q1 FY25) on Friday, revealing a decline in profits despite robust air travel demand.
The carrier, which holds the largest market share in India, reported a profit of ₹2,727 crore (US$326 million) for the quarter ending June 30, representing an 11.7% decrease from the ₹3,087 crore earned in the same period last year.
The fall in profits can be attributed to a significant rise in expenses, which overshadowed the strong revenue growth. Total expenses for the quarter surged by approximately 24% to ₹17,449 crore, with aircraft fuel costs accounting for about 37% of the total.
Notably, aircraft leasing expenses more than tripled compared to the previous year.
.avif)
Increase in Revenue
Despite these challenges, 6E's revenue from operations showed a healthy increase of 17.3%, reaching ₹19,571 crore. The airline also reported an 11.1% growth in available seat kilometres, a key metric measuring passenger carrying capacity, which aligns with the company's projected growth range of 10-12%.
However, the airline faced additional financial pressures, including a foreign exchange loss of ₹575 million, in contrast to a gain of ₹116 crore recorded in the same quarter last year. This shift further impacted the company's bottom line.
.avif)
Outlook
Looking ahead, 6E has forecast high single-digit percentage growth for capacity in the upcoming quarter. This projection comes amid industry-wide expectations of rising costs, with a leading aviation consultancy predicting a 3.8% increase in expenses for Indian airlines in the fiscal year 2025.
As the aviation sector is not yet out of the pandemic-woods, 6E's performance reflects both the opportunities and challenges facing the industry.
Find out more in our latest issue. Explore all the subscriptions plans that Airways has for you. From thrilling stories to insights into the commercial aviation industry. We are a global review of commercial flight.
Exploring Airline History Volume I
.webp)
David H. Stringer, the History Editor for AIRWAYS Magazine, has chronicled the story of the commercial aviation industry with his airline history articles that have appeared in AIRWAYS over two decades. Here, for the first time, is a compilation of those articles.
Subjects A through C are presented in this first of three volumes. Covering topics such as the airlines of Alaska at the time of statehood and Canada's regional airlines of the 1960s, the individual histories of such carriers as Allegheny, American, Braniff, and Continental are also included in Volume One. Get your copy today!
February 2025
