India's top airline IndiGo reported a first-quarter loss on Thursday as it struggled with high fuel prices triggered by the Iran war.
The budget carrier posted a loss of 3.82 billion rupees ($39.6 million) for the quarter ended June 30, compared with a profit of 21.61 billion rupees a year earlier.
Airlines such as IndiGo, which do not hedge fuel, have been grappling with soaring jet fuel prices as the Iran war pushed crude to above $100 per barrel in the quarter, eating into margins.
Quarterly revenue grew 20 percent to 245.84 billion rupees, but expenses jumped at a faster pace of 35.1%. They were led by a nearly 86% surge in aircraft fuel expenses to 108.3 billion rupees.
More than 60 percent of IndiGo's costs are directly or indirectly dollar-denominated, and a depreciating local currency has driven up overall expenses for the company.
The airline said last quarter that it would explore fuel hedging. Airlines hedge fuel costs through financial contracts that lock in prices, helping cushion sudden spikes in fuel costs and improve cost predictability.
-Reuters
The budget carrier posted a loss of 3.82 billion rupees ($39.6 million) for the quarter ended June 30, compared with a profit of 21.61 billion rupees a year earlier.
Airlines such as IndiGo, which do not hedge fuel, have been grappling with soaring jet fuel prices as the Iran war pushed crude to above $100 per barrel in the quarter, eating into margins.
Quarterly revenue grew 20 percent to 245.84 billion rupees, but expenses jumped at a faster pace of 35.1%. They were led by a nearly 86% surge in aircraft fuel expenses to 108.3 billion rupees.
More than 60 percent of IndiGo's costs are directly or indirectly dollar-denominated, and a depreciating local currency has driven up overall expenses for the company.
The airline said last quarter that it would explore fuel hedging. Airlines hedge fuel costs through financial contracts that lock in prices, helping cushion sudden spikes in fuel costs and improve cost predictability.
-Reuters
