Interglobe Aviation shares slip ~10% after Q2 net loss

28 Oct 2024 , 01:57 PM

Interglobe Aviation Ltd., the parent company of IndiGo, India’s largest airline by market share, saw its shares fall 10% on Monday after reporting a net loss for the September quarter, compared to a net profit in the same period previous year.

This is the greatest single-day decrease in the airline’s share price since February 2022.

InterGlobe Aviation Limited, the operator of IndiGo Airlines, declared a net loss of ₹987 Crore for the fiscal quarter ending September 30, 2024 on October 25. The previous year, it made a net profit of ₹189 Crore.

IndiGo’s bottom line fell despite a 13.6% increase in revenues to ₹16,969.6 Crore during the quarter, as a 41% increase in airport fees and charges, combined with a 29.6% increase in supplementary rentals and aircraft repair and maintenance fees, and a 12.8% increase in aircraft fuel expenses harmed the airline’s operating profit from July to September.

In Q2FY25 IndiGo’s aircraft and engine rentals costs also rose nearly four times to ₹763.6 Crore from ₹195.6 Crore a year ago.

When compared year-on-year, ATF prices in July 2024 stood at ₹96,148.38 per kilo litre, nearly 6% higher than ₹90,779.88 per kilo litre in July 2023. Similarly, jet fuel in September 2024 stood at ₹93,480.22 per kilo litre, 16.8% lower when compared to ₹1,12,419.33/kl in the same period in 2023.

At around 12.43 PM, Interglobe Aviation was trading 7.53% lower at ₹4,037.40 per piece, against the previous close of ₹4,366.10 on NSE.

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