IndiGo’s Q3 profit plunges 78% to `549 cr, ops disruptions cause `577.2 cr financial impact

New Delhi: IndiGo on Thursday reported a sharp 78 per cent decline in net profit for the December quarter, hit by widespread flight disruptions and the implementation of new labour laws.

The country’s largest airline posted a net profit of Rs 549.1 crore in the October–December quarter, compared with Rs 2,448.8 crore in the year-ago period.

The airline said exceptional items totalling Rs 1,546.5 crore weighed on earnings, including Rs 577.2 crore linked to operational disruptions in early December and Rs 969.3 crore due to the rollout of new labour codes.

A penalty of Rs 22.2 crore imposed by the aviation regulator Directorate General of Civil Aviation (DGCA) for the disruptions was also accounted for.

IndiGo further reported foreign exchange-related losses of Rs 1,035 crore arising from dollar-denominated future obligations during the quarter.

Despite the profit slump, total income rose to Rs 24,540.6 crore from Rs 22,992.8 crore a year earlier.

CEO Pieter Elbers said the airline faced major cancellations and delays between December 3 and 5, but still delivered revenue growth of about 7 per cent. Excluding exceptional items and forex impact, underlying profit stood at Rs 3,100 crore.

During the quarter, IndiGo carried nearly 32 million passengers, while total passengers flown in the calendar year reached around 124 million. Its fleet stood at 440 aircraft at the end of December.

Following the disruptions, the Directorate General of Civil Aviation curtailed IndiGo’s winter schedule by 10 per cent until February 10 and imposed fines totalling Rs 22.2 crore.

The regulator also directed the airline to furnish a Rs 50 crore bank guarantee.

At the end of December, IndiGo reported a cash balance of Rs 51,606.9 crore, including free and restricted cash.