IndiGo, reported a bigger loss in the September quarter, hurt by higher expenses and as the aviation industry grapples with slowing passenger growth in a sluggish economy.
The airline’s owner InterGlobe Aviation Ltd’s net loss in the 3 months to Sept. 30 widened to ₹1,066 crore ($150.1 million) from ₹652 crore in the same period last year.
Expenses rose 27.6% to ₹9,577 crore. Depreciation and amortisation costs grew more than fivefold to ₹1,029 crore, while costs related to aircraft repair and maintenance nearly doubled to ₹153 crore.
Aircraft fuel costs, meanwhile, rose a modest 2.6%, much lower than the 84% jump a year earlier.
The results come against the backdrop of an escalating tussle between IndiGo co-founders Rakesh Gangwal and Rahul Bhatia over corporate governance issues, which some analysts say could hinder high-level decision making at the airline.
The quarterly loss also comes as Asia’s third-largest economy grows at its slowest pace in years and domestic passenger growth cools.
Passenger traffic in India rose only 1.2% year-over-year in September, the slowest increase since March and the second worst pace in five years.
Still, IndiGo’s quarterly revenue from operations surged 31% to 81.05 billion rupees as the Gurugram-based carrier flew more customers and introduced new destinations.
IndiGo and smaller rival SpiceJet Ltd have benefited so far this year from the collapse of cash-strapped Jet Airways, once India’s largest private carrier, as both raced to fill Jet’s vacated slots.