Interglobe Aviation, which controls the country’s biggest airline by market share, IndiGo Airlines, on Thursday reported a 23.65% y-o-y increase in net profit to Rs 657.29 crore during the October-December quarter on the back of significant decrease in fuel costs and increased passenger revenues. IndiGo’s revenues stood at R4,407.49 crore during the period, increased nearly 12% compared to the same period last year.
This was the first time that the company reported its quarterly earnings after being listed on the stock exchanges in October.
Fuel cost which comprises 40–50% of total expenses of the airline, decreased by 19.79% y-o-y to R1165.86 crore during the quarter due to the lower crude prices in the international market.
The airline reported a 30.39% y-o-y increase in the EBITDAR to R1672.89 crore compared to R1,282.96 crore in the corresponding period in FY15.
“Our business continues to perform well on the back of increase in fleet size, robust passenger demand and low fuel prices,” IndiGo president and whole time director Aditya Ghosh said.
During the quarter the company increased its fleet size to 100 and its average fleet size stood at 4.2 years. Indigo also started to fly to new destinations like Udaipur which is its 34the destination in the domestic market.
“Indigo’s future depends on the timely delivery of the A320 neo aircrafts from Airbus. It will be important for Indigo to grow its capacity significantly every year in order to expand its operations,” said Kapil Kaul of CAPA.
The company placed an order of more than 300 aircrafts which were scheduled to be delivered from January 2016 but were delayed due to technical problems faced by the manufacturer Airbus. In December Indigo carried 27.43 lakh passengers and its market share in the domestic market stood at 35.6%. The passenger load factor (PLF) which is indicator of an airline’s efficiency in operations stood at 88.5% which was the second best in the market during the month.
On Thursday, Indigo’s shares closed down 2.9% at R1,197.50 crore on the Bombay Stock Exchange.