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The Delhi-based low-cost airline IndiGo reported profit-after-tax of ₹496 crore for the quarter ended December 2019. The airline had reported a PAT of ₹190 crore in the corresponding previous quarter. Its strong financial performance has been driven by growth in ancillary revenues and thanks to December being a strong month for the airlines.
Revenues improve
Commenting on the latest results, Ronojoy Dutta, Chief Executive Officer, IndiGo said the airline was happy with the improvement in revenue performance during the quarter and reported a year-on-year revenue per avail seat kilometer or RASK growth of 5.6 per cent with December, in particular, being a strong month. RASK is a way of finding out the efficiency of an airline. “We have now had a string of 5 per cent improvement in unit revenues over the last four quarters,” he pointed out.
Dutta added that the airline reported ancillary revenue growth of 29 per cent against a capacity growth of 19 per cent. “Our cargo uplift grew by 46 per cent on a Y-o-Y basis. IndiGo' s domestic cargo market share is above 40 per cent, which is a sharp increase from the same period last year when it was at 27 per cent. Other ancillary revenues, excluding cargo, have also grown faster than capacity. We are continuously evaluating different ancillary products which can be offered to customers to improve their flying experience,” he said.
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