Domestic carrier IndiGo on Wednesday reported a net loss of Rs 652.1 crore for the quarter ended September 30, 2018, due to high fuel cost, rupee depreciation and intense competition. IndiGo had reported a net profit of Rs 551.6 crore for the same period last year.
The company's revenue from operations rose 16.9 percent to Rs 6185.3 crore for the quarter.
Fuel cost jumped 84.30 percent to Rs 3,035.50 crore in this quarter over Rs 1,647.30 crore for the same period last year.
Tax expenses for the quarter stood at Rs 7,502.30 crore, an increase of 58.20 percent over the same quarter last year.
Earnings before interest, tax, depreciation and amortisation and rental cost, (EDITDAR) declined 93 percent to Rs 111 crore for the quarter.
Aviation in India is facing significant pressure from high fuel costs, rupee depreciation and intense competition, aI of which have impacted our profitability this quarter, said Rahul Bhatia, co-founder and interim CEO, IndiGo.
"Despite the difficult environment, IndiGo remains well positioned thanks to our low cost structure and strong balance sheet," he said.
Aviation consultancy Capa India said the Q2 loss posted by IndiGo is its first quarterly loss in a decade and its largest ever. The extent of losses is surprising, it added.
"Management has been very positive to speak in terms of what the current trends are, one needs to keep in mind that aviation is a highly cyclical business and now that some of the issues, especially higher crude oil prices and increased competition are subsiding you could easily see a turnaround in the entire sector and in Interglobe Aviation specifically," said Dipan Mehta, member, BSE and NSE.