Interglobe Aviation, that runs IndiGo, recorded a five-fold year-on-year jump in its net profit to Rs 590 crore for the March quarter.
The airline’s shares, which have skyrocketed as much as 39 per cent since January, closed up 2.5 per cent on the BSE on Monday, outperforming a 0.6 per cent rise in the Sensex.
IndiGo seems to have weathered the damaging impact of the cancellation of over 30 flights a day in February and March 2019 owing to a shortage of pilots and the repair work at Mumbai’s Chhatrapati Shivaji International Airport. In the third quarter of FY19, the airline had posted a profit of Rs 191 crore.
While revenue from operations jumped 36 per cent year-on-year to Rs 7,883 crore in the March quarter, operating margins or the Ebitda (earnings before interest, tax, depreciation, amortisation and rentals) rose 6.7 basis points to 29.4 per cent, aided partly by relatively low fuel prices.
IndiGo’s revenues were pushed up by greater volume — it carried 17 per cent more domestic passengers in the January-March period, way above the 4.9 per cent rise for all airlines — and better yield.
The revenue stood at Rs 3.7/km per passenger in the last quarter, up 12 per cent from a year before. Experts say the average fare during the quarter rose 10 per cent from the same period last year.
Full-service carrier Jet Airways faced regular grounding of aircraft for non-payment to lessors throughout the last quarter before it shut down all operations on April 17 as it ran out of cash.
It was also a tough quarter for some other airlines. After 17 quarters of double-digit growth, domestic passenger traffic for all airlines slowed to just 4.9 per cent in the March quarter due to a fall in capacity amid higher air fares. —FE