IndiGo Stays Course Despite Losses
by Neelam Mathews - October 25, 2018, 10:21 AM After registering its first quarterly loss in ten consecutive years due largely to price wars, Indian budget carrier IndiGo said on Wednesday said it will neither reduce deliveries nor cut capacity in the near future as it prepares to accept more A320neos from Airbus. The carrier announced a $98 million loss in the three months ending September 30 against a background of an unsustainable level of low fares in India’s domestic market. “Aviation in India is going through pressures from excessive gasoline prices, rupee depreciation, and intense competitors, all of which have impacted our profitability this quarter,” explained IndiGo co-founder and interim CEO Rahul Bhatia. “Regardless of this troublesome setting, IndiGo stays nicely positioned because of our value construction and robust balance sheet.” Fuel constitutes more than 40 percent of total costs in India while about 50 percent of cos...