IndiGo profit soars 4-fold to ₹552 cr

Our Bureau Mumbai | Updated on January 09, 2018 Published on October 31, 2017

Airline credits better revenue management for stellar performance

Interglobe Aviation, which operates the country’s largest domestic carrier, IndiGo, reported a net profit of ₹552 crore in the September 2017 quarter, almost four times as much as it had reported in the year-ago period.

Revenue from operations stood at ₹5,291 crore, 27 per cent higher than in the same period last year, which the airline credited to better revenue management and credits from aircraft manufacturers for excessive grounding of aircraft.

IndiGo’s revenue per available seat kilometre (ASK) — a key measure of an airline’s profitability — stood at ₹3.52, up 12.6 per cent from the year-ago period.

In July, the airline faced trouble with the engines in its new Airbus A320ceo aircraft, which delayed some deliveries and grounded other planes, forcing it to lease more aircraft. The problem with the Pratt & Whitney engines has since been resolved, the airline was quoted as saying recently.

In a statement, Aditya Ghosh, President and Whole Time Director, Interglobe Aviation, said: “We have posted a good quarter, both in terms of profitability and operational performance and have once again been ranked number 1 in on-time performance.”

The airline received credits from Airbus and Pratt & Whitney for the aircraft groundings and delivery delays.

IndiGo dominates the domestic aviation market with 38 per cent market share.

The company said it expects ASKs to rise 14 per cent in the third quarter. Interglobe Aviation’s shares closed up 1.59 per cent at ₹1,244.30 on the BSE on Tuesday.

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Published on October 31, 2017
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