IndiGo Reports Lower Q1 Net Profit

August 1, 2016

IndiGo parent InterGlobe Aviation reported a fall in net profit for the June quarter of 7.4 percent, on cheaper fares and higher expenditure.

Net profit of INR5.918 billion for the first quarter was down from INR6.389 billion in the same period a year ago.

Revenue rose to INR47.41 billion from INR43.22 billion a year ago, but expenditure was up 17.5 percent at INR39.95 billion.

InterGlobe president Aditya Ghosh said “…profitability was lower than last year primarily because of competitive fare pressures.”

Load factor for the quarter fell by 4.7 percentage points to 83.3 percent.

IndiGo is looking at slowing deliveries of the Airbus A320neos it has on order because of problems with the aircraft’s Pratt & Whitney engines.

(Airwise)