The effects of Jet Airways grounding have begun to wane and the airline does not “see any benefit from the Jet Airways situation in September,” the domestic carrier said.
India’s largest airline IndiGo expects downward airfare and revenues in the July-September quarter owing to seasonality, the company said during an analyst call after releasing quarterly results. It also said that the effects of Jet Airways grounding have begun to wane and the airline does not “see any benefit from the Jet Airways situation in September,” the domestic carrier said. While the domestic aviation industry enjoyed the upsurge in fares due to flight crunch caused by Jet Airways’ suspension of operations and the grounding of Boeing 737 fleet, airlines like IndiGo and SpiceJet fared well during those times. However, higher airfares are cooling down. IndiGo also said that it is seeing lower fares in 0-15 day booking window, the news channel reported.
IndiGo, the airline with the biggest market share now, has also released its quarterly results on Friday. With a profit of Rs 1,203 crore in the quarter ended in June, the airline has witnessed a 42 fold increase in its net profit. The airline had posted about Rs 27 crore profit in the corresponding quarter last year. “The company has reported the highest ever quarterly profit after tax,” IndiGo’s CEO Ronojoy Dutta said, adding that a sharp improvement in cargo performance and strong passenger revenues drove the profitability growth. IndiGo controls about half of the market share of the aviation segment in India.
Meanwhile, the board will continue its meeting on Saturday.
Key takeaways from Q1 results
Even with the company being embroiled in promoters spat, IndiGo’s revenue rose over 44 per cent to Rs 9,420.1 crore in Q1. The same stood at Rs 6,512 crore in the corresponding period of the last quarter, the airline said in a BSE filing. While the InterGlobe Aviation Ltd’s IndiGo reported EBITDAR at Rs 2,779 crore in this quarter, it is a considerable jump compared to Rs 1,130 crore in FY19. Also, IndiGo’s yield ballooned 12.8 per cent at Rs 4.08 per km as against Rs 3.62 per km on a yearly basis.