New Delhi, Oct 30 (V7N)- Indian airline IndiGo has said that an increase in airfares has become inevitable due to rising fuel prices amid the ongoing crisis in the Middle East.
The airline announced the decision on Thursday (October 29) as part of its efforts to manage escalating operating costs, Reuters reported.
Facing mounting fuel expenses, IndiGo recorded a loss of 20.55 billion rupees in the September quarter, marking its third consecutive quarterly loss.
Fuel costs, driven largely by surging oil prices, now account for approximately 38 percent of the airline's total expenditure. As a result, IndiGo's overall expenses increased by more than 19 percent in the latest quarter to 263.57 billion rupees.
Willie Walsh, who took over as IndiGo's CEO in August this year, said that during his 47-year career, he had never witnessed fuel prices at such high levels.
To manage the financial pressure and control expenses, the airline plans to reduce the number of flights on international routes.
Despite passenger numbers falling to around 80 percent of capacity last quarter, IndiGo generated higher revenue than in the previous period. Increased ticket prices helped boost earnings despite some seats remaining unoccupied.
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