Millennium Post

IndiGo Q3 profit crashes by 25% to ₹487 crore

InterGlobe Aviation, parent of no-frills airline IndiGo, on Tuesday posted a 25 per cent fall in net profit at Rs 487.26 crore in the three months ended December 2016 primarily impacted by higher fuel expenses and other costs.

The carrier saw the net profit decline even as total income from operations jumped to Rs 4,986.49 crore in the third quarter of the current financial year.

It had a net profit of Rs 650.34 crore on total income of Rs 4,297.76 crore in the 2015 December quarter.

The airline, which has embarked on ambitious expansion plans, currently has a fleet of 126 planes and the count is expected to touch 133 by the end of this fiscal. In the latest December quarter, IndiGo's overall expenses shot up to Rs 4,480.43 crore from Rs 3,415.66 crore in the same period a year ago, according to a regulatory filing. This was mainly driven by over 40 per cent rise in aircraft fuel costs, which stood at Rs 1,671.20 crore in the third quarter. The same stood at Rs 1,165.86 crore in the year ago period.

The airline's yield – an indicator of money earned from a flight – dropped to Rs 3.48 per kilometre in the latest December quarter from Rs 4.14 seen in the same period a year ago.

"We have reported yet another profitable quarter despite lower yields and higher fuel prices. We see robust traffic growth ahead and we will continue to grow and strengthen our network with a view to maximising our long term profitability," InterGlobe Aviation President Aditya Ghosh said.
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