Indigo is India's largest airline in terms of market share.
After the results of the second quarter of the financial year 2024-25, the shares of InterGlobe Aviation, the company operating the low-cost airline Indigo, are seeing a decline of more than 8%. In fact, the company has suffered a loss of Rs 986.77 crore in the second quarter of the financial year 2024-25.
In the same quarter (Q2FY24) a year ago, the company had made a net profit (consolidated net profit) of Rs 188.9 crore. Consolidated revenue from operations of IndiGo in July-September increased by 13.55% year-on-year to Rs 16,969.6 crore. In the same quarter a year ago i.e. in the second quarter of FY24, the company revenue was Rs 14,943.9 crore.
Indigo's revenue decreased by 13% on quarterly basis. In the last quarter i.e. April-June, the company had generated revenue of Rs 19,571 crore from operations. There has been a decline of 13.29% in the current quarter (Q2). At the same time, in the last quarter the company had made a net profit of Rs 2,729 crore.
Indigo's shares have risen by about 35% so far this year The shares of InterGlobe Aviation, the company that operates IndiGo, are currently trading at the level of Rs 3,997 with a decline of 8.44%. Its stock has given a negative return of 16.45% in the last 1 month. At the same time, the stock has given positive returns of only 1.84% in the last 6 months. However, the stock has risen about 35% so far this year.
InterGlobe Aviation shares are trading at Rs 3,997 with a decline of 8.44%.
Three reasons for loss in the second quarter
- 41% increase in airport fees, 29.6% increase in supplementary rental, 12.8% increase in repair and maintenance and ATF.
- The aircraft fuel price in July-September 2024 was 96,148.38/1000 litres, in 2023 it was 90,779.88/1000 litres.
- IndiGo's per passenger earnings declined from Rs 5.24 in the June quarter to Rs 4.55 in the September quarter.
Revenue increased due to increase in number of passengers in the second quarter
- The company's revenue increased by 14% during July-September due to increase in domestic travel.
- A total of 244.49 lakh passengers traveled by the airline during the second quarter.
- IndiGo airline's share in the Indian market was 62.5%.
- A total of 234.09 lakh people traveled by IndiGo during July-September last year.
- A total of 167.93 lakh people traveled by airline during the Corona epidemic.
Indigo is India's largest airline IndiGo is India's largest airline by market share. It was founded in 2006 by Rahul Bhatia and Rakesh Gangwal. It operates more than 2000 flights daily.
Indigo flights operate on more than 80 domestic destinations and more than 30 international destinations. It connects 110+ destinations. The airline has a fleet of more than 320 aircraft. It has more than 50 crore customers.
Graphics Source: VaskarAssets
