The biggest airline in the nation, IndiGo, said on Friday that its profit after tax for the three months ending in June decreased by over 12% to Rs 2,728.8 crore due to increased fuel and other costs.

The low-cost airline, which will soon mark 18 years of operation and launch business class seating, said that network development, which includes new destination additions, would continue but noted a more favorable inflationary climate.

In the first quarter of the current financial year, total revenue increased by 18% to Rs 20,248.9 crore, while total expenditures increased by 24% to Rs 17,444.9 crore, mostly due to increased fuel prices.

The parent company of IndiGo, InterGlobe Aviation, reported a profit after taxes of Rs 3,090.6 crore for the June quarter of 2023.

According to a statement, the carrier’s profit after tax for the most recent June quarter, excluding the effect of foreign currency, was Rs 2,786.3 crore.

The overall revenue for the same time last year was Rs 17,160.9 crore.

In the three months ending in June 2024, the airline’s overall expenditures increased by 24% to Rs 17,444.9 crore, mostly due to a 22.7 percent increase in fuel prices.

The total costs during the same time last year were Rs 14.070.2 crore.

The business claims that engine and aircraft rents increased from Rs 194.6 crore to Rs 624.1 crore in the most recent June quarter.

Seat occupancy on a flight is measured by the load factor, which decreased to 86.7% in the quarter under review from 88.6% in the same time last year.

IndiGo CEO Pieter Elbers said that network growth is a crucial component of the airline’s strategy and that the company has now been profitable for seven consecutive quarters during a conference call with analysts to discuss the most recent quarterly results.

Additionally, airport fees have begun to rise. The airline is keeping an eye on this and is in communication with airport partners. During a conference call with investors to go over the most recent quarterly results, he said that maintenance work is going through a little inflationary cycle.

“At the moment, the inflationary environment is higher… Negi said, “We are looking at ways to control the costs, as we are experiencing them across the board. An increase in capacity is helping offset higher costs.”