Airline Back In Black On Robust Demand, Logs Rs 919 Crore Profit

Airline Back In Black On Robust Demand, Logs Rs 919 Crore Profit

InterGlobe Aviation, the parent firm of IndiGo, on Thursday flew into the profitability zone, logging in a net profit of Rs 919.2 crore in the fourth quarter (Q4) on robust market demand and higher revenues. IndiGo which had faced turbulence last year, had incurred a net loss of Rs 1,681.8 crore in the three months ended March 2022. The carrier has forecast a 5-7 per cent rise in Available Seat Kilometres (ASK), an indicator of seat capacity, in the June quarter, reflecting the bullishness in the aviation space. 

InterGlobe Aviation has reported its “best-ever fourth-quarter net profit of Rs 9,192 million for the quarter ended March 2023”. Excluding the foreign exchange gain of Rs 252.8 crore, the net profit aggregated to Rs 666.4 crore, according to a release. The total income surged nearly 78 per cent to Rs 14,600.1 crore in the fourth quarter of the last fiscal. In the same period a year ago, the total income was Rs 8,207.5 crore.

“For the quarter, our passenger ticket revenues were Rs 124,346 million, an increase of 80.6 per cent and ancillary revenues were Rs 14,459 million, an increase of 36.6 per cent compared to the same period last year,” acording to the release by the company.

IndiGo CEO Pieter Elbers said that with a combination of robust market demand and focused execution of its strategy, the March quarter was the second consecutive quarter wherein the airline produced strong operational and financial results.

“For the year ended March 2023, IndiGo reported a profit of Rs 26,540 million, excluding foreign exchange impact. Including foreign exchange impact, IndiGo reported a net loss of Rs 3,058 million for the year. The profits of the third and the fourth quarters largely compensated for the losses incurred in the first and the second quarters,” the carrier said.

At the end of March, IndiGo’s total cash balance stood at Rs 23,424.3 crore, comprising Rs 12,194.8 crore of free cash and Rs 11,229.5 crore of restricted cash. “The total debt (including the capitalised operating lease liability) was Rs 4,48,542 million,” the release added.

About outlook, the airline said in the June quarter, capacity in terms of ASKs is expected to increase by around 5-7 per cent compared to the fourth quarter of fiscal 2023.

IndiGo operated at a peak of 1,815 daily flights, including non-scheduled flights in the March quarter. The airline has 304 planes, including 162 A320 neos, 79 A321 neos, and 2 A321 freighters at the end of March.

Shares of IndiGo dropped 1.57 per cent to close at Rs 2,264 apiece on the BSE on Thursday. 

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