Indigo is going through a lot of turbulence on the bourses today morning. The top loser on the BSE, the stock price hit a new 52-week low at Rs.891.10, a fall of over 11%.

The market is perturbed with its very poor show for Q1FY19, mainly on the back of rising fuel cost. It net profit fell by a huge 97% (YoY) to Rs.28 crore on a 13% rise in revenue at Rs.6512  crore.

Its aircraft fuel expenses rose 54% during the quarter to Rs 2,715.60 crore, which is 42% of revenue earned. What also did not help was a loss of Rs.246 crore on account of unfavourable foreign exchange movements and certain non-recurring maintenance costs. The inability to hike fares due to mounting competition could not offset the fuel price rise. With fuel prices still on the rise, unless the company hikes fares and cuts costs, the second quarter could see another crash landing.