Oct 25 Reuters India39;s IndiGo airline operator Interglobe Aviation swung to its first quarterly loss in two years, weighed down by fuel expenses and growing aircraft rental costs.
The country39;s biggest airline by market share said on Friday it made a loss of 9.89 billion rupees 117.7 million for the three months to Sept. 30, compared to a profit of 1.88 billion rupees a year ago.
IndiGo is India39;s largest airline with a market share of 62.5. It is also Asia39;s biggest carrier by market valuation.
Issues with engines made by Pratt Whitney grounded over 70 IndiGo aircraft in November last year is weighing on its bottom line, as the airline continues to extend leases on older jets while also leasing newer jets.
The airline operator said overall expenses jumped 22, outpacing a 13.6 rise in revenue.
Fuel expenses rose about 13, while supplementary aircraft rental and maintenance costs jumped nearly 30. Costs from newer aircraft and engine rentals rose nearly fourfold.
Meanwhile, available seat kilometres a measure of the airline39;s passenger carrying capacity grew 8.2, meeting its own forecast of a high single digit growth.
The company, which has 410 aircrafts under its wings, expects thirdquarter capacity to grow by lowdoubledigit percentage from a year earlier.
Indigo is also bracing for its departure from an alleconomy cabin when it introduces its firstever business class on select domestic routes next month.
1 84.0560 Indian rupees
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