IndiGo CEO says ‘no choice’ but to consider fare hikes as fuel costs surge

IndiGo CEO Willie Walsh has signalled possible fare hikes as rising fuel costs put pressure on the airline's finances, saying the carrier has “no choice” but to consider increasing fares to offset the surge in its fuel bill.According to news agency PTI, Walsh said the airline would continue to trim expenses but cautioned against expecting significant cost-cutting measures.“We will continue to look at measures to trim expenses but should not expect any significant cost measures,” he said.IndiGo's parent company, InterGlobe Aviation, reported a net loss of Rs 1,879.1 crore in the September quarter of the current fiscal year, compared with a loss of Rs 2,582.1 crore in the corresponding period a year ago.According to the airline, exceptionally high fuel costs and rupee depreciation weighed on profitability.

Aircraft fuel expenses surged 67.2 per cent year-on-year to Rs 9,966.8 crore in the quarter ended September, while total expenses rose to Rs 26,188.4 crore, exceeding total income of Rs 24,311.9 crore.The airline's total income increased from Rs 19,599.5 crore in the year-ago quarter to Rs 24,311.9 crore in the latest September quarter. However, higher expenses continued to put pressure on its bottom line.Walsh said the seasonally soft September quarter was marked by exceptionally elevated fuel costs and continued geopolitical turmoil.“We responded with prudent capacity reduction and yield management, supporting strong revenue performance but only partially offsetting the higher costs.

Despite these actions, the quarter resulted in a net loss of around 19 billion rupees,” he said in a release.Walsh also said IndiGo's efficient cost base and strong liquidity gave the airline several options to manage rising operational expenses.You use AI every day. Now get your AI Quotient. Take the AIQ test.