IndiGo may increase airfares as rising fuel costs and the depreciation of the Indian rupee put pressure on the airline’s finances, according to media reports.
The airline’s chief executive said IndiGo had “no choice” but to consider fare increases to offset the significant rise in fuel expenses. However, the airline would seek to minimise the hikes to maintain affordable fares and support passenger demand.
IndiGo’s parent company reported a net loss of Rs 1,879.1 crore for the September quarter, compared with a loss of Rs 2,582.1 crore in the corresponding period a year earlier.
Despite the narrower loss, higher operating expenses continued to weigh on profitability.
According to the company’s regulatory filing, total income rose to Rs 24,311.9 crore in the September quarter, up from Rs 19,599.5 crore a year earlier. However, total expenses increased to Rs 26,188.4 crore.
Aircraft fuel expenses surged 67.2 percent to Rs 9,966.8 crore during the quarter, adding to the airline’s financial pressure.
Rising fuel prices, geopolitical uncertainty and the weakening rupee have increased operating costs across the aviation sector. Airlines have also introduced fuel surcharges to offset additional expenses.
The airline’s management said its strong liquidity and efficient cost structure would help it navigate the challenging environment, with no significant cost-cutting measures expected.
The timing and extent of any fare increases have not been specified. Passengers could face higher travel costs if the airline proceeds with the proposed hikes.
