IndiGo, India's largest airline by market share, reported a consolidated net loss of Rs 2,536 crore for the fourth quarter of fiscal year 2024, marking a significant downturn from the net profit of Rs 919 crore recorded in the same period last year. This represents a year-on-year decline of 182% in profit after tax (PAT).
Revenue and Operational Performance
The airline's revenue from operations increased by 14% to Rs 17,825 crore in Q4 FY24, compared to Rs 15,614 crore in Q4 FY23. However, higher expenses, particularly fuel costs and aircraft maintenance, weighed on profitability. Total expenses rose to Rs 20,361 crore, up from Rs 15,164 crore in the year-ago quarter, driven by a surge in fuel prices and increased capacity.
Cost Pressures
Fuel costs, which account for a significant portion of an airline's operating expenses, rose sharply. IndiGo's fuel expenses increased by 28% to Rs 7,210 crore in Q4 FY24, compared to Rs 5,635 crore in Q4 FY23. Additionally, aircraft and engine rentals climbed by 34% to Rs 3,245 crore, reflecting the airline's expansion of its fleet.
Full-Year Performance
For the full fiscal year 2024, IndiGo reported a net profit of Rs 2,249 crore, a sharp decline from Rs 5,165 crore in FY23. Revenue for the year grew by 21% to Rs 70,784 crore, but expenses rose at a faster pace of 27% to Rs 68,535 crore, squeezing margins.
CEO Commentary
IndiGo CEO Pieter Elbers acknowledged the challenging quarter, stating that the airline faced headwinds from elevated fuel prices and supply chain disruptions affecting aircraft availability. He emphasized that the company remains focused on operational efficiency and cost control while continuing to expand its network.
Outlook
Looking ahead, IndiGo expects capacity growth of around 12% in the first quarter of FY25, as it adds more aircraft and routes. The airline is also investing in technology and customer experience to strengthen its competitive position. However, analysts remain cautious about the near-term profitability due to volatile fuel costs and intense competition in the domestic aviation market.
