In a significant development for the aviation industry, InterGlobe Aviation, the parent company of India’s largest airline, IndiGo, reported a profit after tax of ₹188.9 crore for the September quarter.
This is a remarkable turnaround from the loss of ₹1,583.3 crore posted in the same period last year. The profit was primarily driven by increased air traffic and capacity.
IndiGo’s total income for the second quarter of the current fiscal year jumped 20.6% to ₹15,502.9 crore, compared to ₹12,852.3 crore in the same period a year ago.
This marks the fourth consecutive quarter of profitable growth for IndiGo, demonstrating the effective execution of its plans and strategy, coupled with strong demand.
IndiGo CEO Pieter Elbers attributed the success to a clear strategy and focus on execution.
He stated, “With our clear strategy and focus on execution, we have completed a full cycle and remained profitable for the last four quarters“.
The airline’s capacity increased by 27.7% in the September quarter, which is traditionally the weakest quarter. Despite this, the yield declined by 12.4%, and the load factor improved by 4.1 points to 83.3%. The number of passengers also rose by 33.4% to 26.3 million.
Looking ahead, the third quarter of the fiscal year 2024 is expected to see an increase in capacity in terms of Available Seat Kilometres (ASKs) by around 25% compared to the third quarter of the fiscal year 2023. ASK is a key indicator of capacity in the aviation industry.
As of the end of September, IndiGo’s total cash balance stood at ₹30,665.8 crore, and the airline had a fleet of 334 planes. In September, IndiGo’s domestic market share stood at 63.4%, according to the latest official data.
The news of the profit led to a nearly 1% increase in IndiGo’s share price, closing at ₹2,509 apiece on the BSE.
This news comes as a positive signal for the rebound of air travel and the overall recovery of the aviation industry, which has been severely impacted by the COVID-19 pandemic.
The profitable growth of IndiGo, amidst these challenging times, is a testament to the resilience of the aviation sector and its potential for a strong comeback.