IndiGo profit flies 4-fold to ₹551.5 cr on compensation from P&W, Airbus

The largest airline that controls over 38 per cent of the domestic air passenger market had reported a 139.8 crore net income in the corresponding quarter last fiscal year. For the reporting quarter, net soared 294.4 per cent. The airline said the bottom line was boosted by a massive 710 bps spike in profit margins to 10.4 per cent from 3.4 per cent a year ago.

"Profitability was favourably impacted by better revenue management and credit received from manufacturers related to aircraft grounding and delivery delays," the airline said in an exchange filing without disclosing the quantum of payments it has received from Airbus for delayed deliveries of A320 Neos and also from the American engine maker Pratt & Whitney. However, it said its other income rose over 33.5 per cent to Rs 214.6 crore. IndiGo has been facing problem with aircraft engines supplied by P&W in its A320 Neos for quite some time, which also led to grounding of as many as eight aircraft since June.

Indigo deploys only Airbus planes. On top of it, the plane- maker Airbus has been unable to meet delivery of some of these A320 Neos on time too.

The airline operates a fleet of 141 aircraft including 24 A320 Neos. Its income from operations jumped 27 per cent to Rs 5,291 crore, while other income rose 33.5 per cent to Rs 214.5 crore from Rs 160.7 crore, taking the total revenue to Rs 5,505.6 crore up 27.2 per cent from Rs 4,327.7 crore. pti