IndiGo Reports 11.7% Q1 Profit Decline

IndiGo, India's largest airline by market share, reported an 11.7% year-on-year decline in net profit for the first quarter of FY25, despite a 17% increase in revenue from operations. The profit drop to Rs 2,727 crore was largely due to higher leasing costs, maintenance expenses from operating older aircraft, and rising fuel costs amidst a depreciating rupee. The airline's total expenses surged by 24%, with aircraft rental costs tripling and fuel costs accounting for 37% of expenses. IndiGo's grounded Airbus A320neo aircraft due to Pratt & Whitney engine issues necessitated reliance on leased planes, including Boeing 737s from Qatar Airways. Despite these challenges, the airline saw a robust demand with an 11.1% increase in available seat kilometers and plans to unveil new initiatives on its 18th anniversary.