Shares of Interglobe Aviation Ltd, the operator of IndiGo airline, nosedived 13% and hit an intraday low of Rs 3,780 per share on 28 October after the company announced its quarterly earnings for the July-September quarter. 

The company reported a net loss of Rs 987 crore for the quarter under review from Rs 189 crore net profit reported in the same quarter of the previous fiscal year. 

However, the revenue of the company increased 13.6% year-on-year (YoY) during the quarter to Rs 16,969.6 crore, following a 41% jump in airport fees and charges along with a 29.6% increase in supplementary rentals and aircraft repair and maintenance fees. 

Moreover, during the quarter the company’s aircraft and engine rentals expenses increased nearly four times to Rs 763.6 crore from Rs 195.6 crore during the same quarter last year. 

In a year-on-year comparison, ATF prices in July 2024 were Rs 96,148.38 per kilolitre, up nearly 6% from Rs 90,779.88 per kilolitre in July 2023. Similarly, in September 2024, jet fuel was priced at Rs 93,480.22 per kilolitre, marking a 16.8% decrease from Rs 1,12,419.33/kl in September 2023.

Additionally, IndiGo’s yield per passenger dropped to Rs 4.55 per kilometre in the September quarter from Rs 5.24 per kilometre in June, as the airline offered discounts to attract customers during the seasonally slower July-September period.

IndiGo’s revenue growth was driven by a strong rise in domestic travel, with demand in India surging for the last two quarters.

For the September 2024 quarter, IndiGo carried 244.49 lakh passengers, holding a 62.5% market share, up from 234.09 lakh passengers and a 60.7% share in the same period last year.

In the pre-pandemic July-September quarter of 2019, IndiGo had carried 167.93 lakh passengers, with a market share of 49%.

At 11:48 am, the shares of Interglobe Aviation were trading 8.43% lower at Rs 3,997.90 on NSE.

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