IndiGo may raise airfares to offset a sharp increase in fuel costs, chief executive officer Willie Walsh said, as the airline reported a net loss of Rs. 18.79 bn for the September quarter. Higher fuel expenses and rupee depreciation offset stronger revenue during the period.

Walsh said IndiGo would seek to limit fare increases, but the significant rise in its fuel bill left the airline with little choice. He said the company’s efficient cost base and strong liquidity provided flexibility to manage higher operating expenses without undertaking significant cost-cutting measures.

Fuel prices have risen amid the West Asia crisis and wider geopolitical uncertainties, pushing up operating costs across the airline industry. IndiGo and other carriers have also introduced fuel surcharges, while the airline responded to the difficult environment through capacity reductions and yield management.

InterGlobe Aviation, IndiGo’s parent company, reported a loss of Rs. 18.79 bn in the September quarter, narrower than the Rs. 25.82 bn loss recorded in the corresponding period a year earlier. Total income increased to Rs. 243.12 bn from Rs. 196 bn, while total expenses rose to Rs. 261.88 bn.

Aircraft fuel expenses jumped 67.2 per cent to Rs. 99.67 bn. During the quarter, available seat kilometres (ASKs) declined 1 per cent to 40.8 bn, while passengers carried fell 4.7 per cent to 27.5 mn. IndiGo expects capacity to grow by early single digits in the December quarter compared with a year earlier. Its shares closed unchanged at Rs. 4,680 on the BSE.