Indian indigo reports highest ever quarterly revenue

India’s Interglobe Aviation Ltd., the parent company of IndiGo, released impressive numbers as part of its fiscal 2023 first quarter results. The low-cost carrier posted the highest revenue quarter ( from April to June 2022) in its history, posting a whopping 310.7% increase over the same three-month period last year. Let’s unpack the numbers.

Highest Quarterly Revenue

IndiGo’s total revenue (including operating income and other sources) for the first quarter of FY2023 soared to ₹130,188 million ($1.644 billion) from just 31 ₹703m ($400.58m) in the first quarter of FY22. From there, ticket sales revenue increased by nearly 400% to ₹114,669 million ($1.449 billion), while ancillary revenue jumped over 90% to ₹12,863 million ($162.56 million).

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IndiGo CEO Mr. Ronojoy Dutta said:

“Our revenue performance this quarter has been impressive. We recorded the highest revenues ever generated by the company and thus generated profits at the operational level. However, fuel and currency cost pressures prevented us from translating this strong revenue performance into net profitability.

Indeed, while revenues were breaking records, profits did not follow. The Indian airline’s net profit for the quarter amounted to ₹3,603 million ($45.5 million), but was overshadowed by foreign exchange losses amounting to ₹14,246 million ($180 millions of dollars).

IndiGo cut its losses for the quarter. Photo: Airbus

At the end of the quarter, IndiGo suffered a net loss of ₹10,643 million ($134.5 million). In contrast, this figure is significantly lower than the net loss of ₹31,742 million ($401.15 million) for the same quarter a year ago. Still, it shows only a slight improvement from the net loss of ₹16,818 million ($212.54 million) in the previous quarter which ended 31 March 2022.

The 36% decrease in net loss is impressive considering the many challenges in Indian aviation. Indian carriers were already cursed by high ATF prices, while the depreciation of the rupee compounded their financial difficulties. Additionally, the airline’s CEO blamed fuel prices as one of the reasons for a loss-making fourth quarter of 2022.

IndiGo’s resilient performance in these turbulent times is commendable.

Number of passengers and fuel cost

Without going into details, IndiGo claimed that its passenger numbers increased by 221.9% compared to the fourth quarter of the previous year. By comparison, the airline reported a 10.3% increase in passengers in its fourth quarter 2022 financial report. In any case, the recent surge in global air travel demand leaves no doubt about IndiGo’s claims for the last quarter.


Load factors for the quarter averaged 79.6%, up 20.9 points from the first quarter of last year and just 2.9 points from the quarter ending in March 2022.

IndiGo spent more than 40% of its total expenses in the three months from April to June on fuel. Specifically, fuel costs totaled up to ₹59,901 million (US$757.62 million) out of the airline’s total expenditure of ₹140,831 million (US$1.78 billion). Fuel costs for this quarter increased by 392.6% compared to the quarter ending June 2021.

IndiGo appears to be on a steady recovery trajectory. Photo: Airbus

The airline said in a statement,

“Headwinds caused by the depreciation of the Rupee and rising fuel prices resulted in a net loss of INR 10,643 million for the quarter ended June 2022.”

Additional aircraft leasing, repair and maintenance was the second largest contributor to the airline’s costs, amounting to ₹18,853 million ($238.45 million). After foreign exchange losses and amortization expenses occupying the second and third places, personnel costs came fourth, costing IndiGo ₹10,583 million ($133.85 million) throughout the quarter.


As Simple Flying reported yesterday, the airline is expected to restore pilot salaries to pre-pandemic levels by November this year. The carrier plans to grant two 6% wage increases in the coming months. This will no doubt be reflected in IndiGo’s financial results over the next two quarters, but the damage should not be too severe given the continued strong demand for air travel and IndiGo’s continued dominance of travel. interiors.

Current financial situation

As of June 30, 2022, the airline had a total cash balance of ₹190,694 million ($2.4 billion), up 11.7% from the same period last year. According to this figure, ₹83,037 million ($1.05 billion) is “free money”, while the rest is “restricted”. Cash reserves increased by almost 5% compared to the quarter ending in March, while available cash increased by 7%.


India’s largest airline increased its fleet by six cells in the last quarter. Photo: Akshay Mantri

In the same vein, debt also increased by 16.6% YoY and 7.8% from March 2022 to ₹48,036m ($607.55m). Other liabilities stood at ₹344,740 million ($4.36 billion) as of June 30.

Fleet Update

During the quarter, IndiGo retired several of its older Airbus A320ceos while bringing the new A320neos into active service. As a result, the carrier’s fleet showed a net increase of six aircraft, currently having a total of 281 airframes. This includes 146 A320neos, 65 A321neos, 35 A320ceos and 35 other ATRs.

IndiGo’s network has 73 domestic destinations and 20 international destinations, an increase of five international destinations from March 2022. The airline operated a maximum of 1,667 flights (including non-scheduled flights) per day during the busy summer travel season and maintained a good time outperformance of 85.5% in four key metropolitan destinations.

Future prospects

With its extensive home network and massive fleet, IndiGo has enjoyed a high market share in Indian markets for some time now. While commenting on his airline’s performance going forward, Dutta said:

“While our financial performance in the second quarter will be challenged by weak seasonality, the long-term revenue trend remains strong.”

However, with two new airlines preparing to enter the battlefield soon, things may not be the same for the foreseeable future. Akasa Air launches commercial operations this Sunday and has already started adding new routes to its network.

While the young Akasa, with his two planes and a handful of routes, may not be able to challenge the mighty IndiGo at this stage, the latter will surely be watching closely every step taken by India’s newest airline. The start-up airline will seek to slowly reduce IndiGo’s lead before being joined by Jet Airways 2.0.

What do you think IndiGo has in store going forward? Do you think India’s largest airline faces a significant threat from startups like Akasa and Jet Airways? Please let us know your thoughts in the comments.