October 28, 2021 6:42:53 pm
Interglobe Aviation Ltd, which operates India’s biggest airline, 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.
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.
($1 = 74.8770 Indian rupees)
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