IndiGo Reports Record Quarterly Profit
Low cost Indian carrier IndiGo reported an INR8.11 billion rupee (USD$126 million) net profit for its first quarter, a 37 percent increase and its highest ever quarterly profit.
Total revenue for the quarter to end June was INR59.56 billion, with passenger revenue coming in 27.9 percent higher at INR50.78 billion. Costs of INR48.31 billion meant the airline made an operational profit of INR11.24 billion, a 50.6 percent increase from the previous year quarter.
IndiGo’s president Aditya Ghosh said “We are pleased to report our highest ever profit after tax this quarter. At the same time, were ranked number One in on-time performance for the quarter.”
Passenger traffic in revenue passenger kms (RPK) rose 25.4 percent on an ASK capacity increase of 18.7 percent. Load factor for the quarter was 88.0 percent, an increase of 4.7 percentage points from 1Q16.
IndiGo’s RASK revenue edged up 5.5 percent and yield 2.0 percent. It also pushed its costs per available seat km, ex fuel, down by 2.5 percent.
IndiGo added four aircraft to its fleet during the quarter, three of which were Airbus A320neos. That brought its fleet of neos to 22, but a number had to be taken out of service due to ongoing problems with the aircraft’s Pratt & Whitney engines. The airline now has a fleet total of 135 A320-family aircraft.
Looking forward, the airline expects to increase ASK capacity by 15 percent in the second quarter, and 20 percent for the full year.