IndiGo's parent company posts bigger quarterly loss as fuel expenses soar

Interglobe Aviation Ltd, which operates India`s biggest airline IndiGo, reported a bigger quarterly loss on Thursday as higher fuel expenses eclipsed a rebound in travel demand.

Rocketing fuel prices pose a serious threat to the recovery in India`s pandemic-battered aviation industry, in line with U.S. peers that have also said a complete return to profit may be delayed as higher prices overshadow strong demand.

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Interglobe`s aircraft fuel expenses in the quarter soared 207.8% to 19.89 billion rupees in the reported quarter, the company said.

Still, revenue from operations rose 104.6% as COVID-19 vaccination rates picked up and the government eased most air travel-related curbs.

Regulatory data shows passenger growth across airlines jumped 136.6% in August and 79.2% in September compared to last year, and some 7.07 million passengers flew in September, compared to 6.7 million in August.

IndiGo`s net loss widened to 14.40 billion rupees ($192.32 million) in the three months to Sept. 30, from 11.95 billion rupees a year earlier.

The airline, which has reported losses since 2020, said it expects passenger traffic and revenue environment to continue to improve.