Higher fuel costs push India's top airline to bigger loss
BENGALURU, May 25 (Reuters) - InterGlobe Aviation Ltd (INGL.NS), the operator of India's biggest airline IndiGo, reported a larger loss for the fourth quarter on Wednesday as higher fuel costs more than offset a rebound in demand for air travel.
After two years of pandemic-curtailed travel, airlines globally have made a comeback in recent months riding on a wave of pent-up demand that has encouraged them to bump up capacity.
But the industry's recovery faces risks from a surge in global jet fuel prices, which neared 14-year highs in the quarter after the Russian invasion of Ukraine.
"Although traffic rebounded and demand was robust during the latter half of the quarter, we were challenged by high fuel costs and a weakening rupee," Chief Executive Ronojoy Dutta said in a statement.
InterGlobe's aircraft fuel expenses soared 68.2% to 32.21 billion rupees ($415.31 million) in the period, while total expenses surged 31.5%. read more
Net loss came in at 16.80 billion rupees for the three months ended March 31, compared with a loss of 11.59 billion rupees a year earlier.
However, the resurgence in air travel demand helped revenue from operations jump 29% to 80.21 billion rupees. Passenger load factor, or the passenger carrying capacity being used, rose to 76.7%.
Yields, a metric of profitability, increased 19.2% to 4.40 rupees.
($1 = 77.5040 Indian rupees)
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