InterGlobe Aviation (INDIGO) Q2 24/25 earnings summary

Executive summary

• Total income for Q2 FY25 rose 14.6% year-over-year to INR 178 billion, with capacity (ASK) up 8.2% and fleet reaching 410 aircraft.

• Net loss of INR 9.9 billion, reversing from a profit of INR 1.9 billion in Q2 FY24, mainly due to higher fuel costs, aircraft groundings, and increased expenses.

• Load factor slightly decreased to 82.6%, while yield improved by 2.3% to INR 4.55.

• Strategic launches included business class, BluChip loyalty program, and digital platform upgrades.

• Passenger ticket revenue increased 9.9% and ancillary revenue grew 20.9% year-over-year.

Financial highlights

• Revenue from operations up 13.6% year-over-year to INR 169.7 billion; EBITDAR at INR 24.3 billion (14.3% margin), nearly flat year-over-year.

• Net loss of INR 9.9 billion with a negative net profit margin of 5.8%, compared to a 1% margin last year.

• Total expenses increased 21.9% year-over-year, driven by higher fuel, rentals, and maintenance costs.

• CASK rose 11.8% to INR 4.69; CASK ex-fuel up 16.8% to INR 2.96; CASK ex-fuel, ex-forex up 23% to INR 2.9.

• Free cash at quarter end was INR 243.6 billion; total cash (free + restricted) INR 393.4 billion; total debt including leases at INR 592.4 billion.

Outlook and guidance

• Expecting early double-digit capacity growth for the full year and Q3 FY25.

• Aircraft groundings and related costs are reducing, expected to improve future quarters.

• Anticipate PRASK moderation in Q4 by early to mid-single digits year-over-year.

• Business class launch and loyalty program expansion anticipated to support revenue.

• Provided services to 45 additional international destinations through strategic partnerships.