Interglobe Aviation, which owns Indigo Airlines, on Tuesday reported a 23.6% year-on-year increase in its net profit at R139.84 crore for the quarter ended September 30, on the back of increased revenues and other income.
The biggest low-cost carrier of the country reported a 17.90% y-o-y increase in revenues on the back of a 32.7% increase in the number of passengers carried during this period compared with the same period last year. The other income of the airline also increased by 63.12% y-o-y R168.76 crore.
Despite a decent increase in the top line, growth in profit at the operating level remained muted due to the increase in expenses. Fuel cost of the airline during the quarter increased by 25% y-o-y, while the aircraft rentals increased by 28.27% y-o-y to R772.09 crore as a result of the increase in fleet size. The no frills airline also saw a rise in the employee cost as well.
As a consequence, the EBITDAR (earnings before interest, tax, depreciation, amortisation and aircraft rentals) increased by 12.08% y-o-y to R977.43 crore. Due to increase in capacity and expenses, the yield or the revenue per seat kilometre (RSK) decreased by 11.1% to R3.28, compared with R3.68. “We are pleased to report another profitable quarter and a traffic growth of 32.7% and at the same time our cost excluding fuel has reduced by 32.7% despite operating in an inflationary environment,” said Aditya Ghosh, president, Interglobe Aviation.
The fleet size of the low-cost airline now stands at 118 planes and the aircraft related debt stood at R2,742.80 crore during the quarter. According to the statement issued by the company, the capacity or average seat kilometre is expected to increase by 30% in the next two quarters of the current financial year, which may lead to further increase in expenses for the airline.