New Delhi

Interglobe Aviation, which operates IndiGo, reported an 11.7% decline in first-quarter profit on Friday, despite strong air travel demand, due to higher expenses. For the three months ending June 30, the airline posted a profit of ₹2,727 crore ($326 million), down from ₹3,087 crore a year earlier.

Expenses surged 24% to ₹17,449 crore, with fuel costs making up about 37% and aircraft rental expenses more than tripling. The company also faced a foreign exchange loss of ₹575 crore, compared to a ₹116 crore gain a year ago. Revenue from operations increased 17.3% to ₹19,571 crore. The airline’s available seat kilometers, a measure of passenger capacity, grew 11.1%, exceeding its 10%-12% growth estimate. IndiGo anticipates high single-digit percentage growth in capacity for the second quarter.