IndiGo CEO says ‘no choice’ but to consider fare hikes as fuel costs surge
IndiGo's CEO Willie Walsh has indicated that ticket prices may soon rise as the airline grapples with soaring fuel costs, which have climbed by 67.2 percent compared to last year. Despite facing substantial challenges, with a net loss of Rs 1,879.1 crore for the September quarter, Walsh emphasizes the importance of cutting expenses and maintaining operational efficiency to manage these rising…
IndiGo CEO Willie Walsh has indicated that the airline may need to consider increasing fares due to soaring fuel costs putting pressure on the company's finances. Walsh stated that while the carrier is actively seeking to trim expenses, it does not expect any substantial cost-cutting measures in the near future. In the September quarter of the current fiscal year, IndiGo reported a net loss of Rs 1,879.1 crore, compared to a loss of Rs 2,582.1 crore in the same period last year.
The airline attributed the decline in profitability to exceptionally high fuel costs and a weakened Indian rupee, which led to a surge in aircraft fuel expenses by 67.2% year-on-year to Rs 9,966.8 crore. Despite trimming capacity and implementing yield management strategies, IndiGo's total expenses exceeded its total income of Rs 24,311.9 crore, resulting in a net loss of approximately 19 billion rupees during the quarter.
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