IndiGo Profits Surge 111% in Q3, Fueled by Strong Travel Demand

5 Feb 2024 , 09:51 AM

The parent company of IndiGo, the biggest low-cost airline in India, InterGlobe Aviation Ltd., announced on February 2 that its net profit for the December quarter increased by 111%. This increase was primarily driven by the ongoing demand for air travel as well as a fuel surcharge that was implemented in October.

The airline told exchanges that net profit was ₹2,998.12 crore as opposed to ₹1,422.6 crore the previous year.

Revenue reached ₹19,452.15 crore, up 30%.

According to the announcement, IndiGo’s overall revenue increased to ₹20,062.2 crore from ₹15,410.2 crore during the same time last year.

With 243.10 lakh passengers flown, the airline held a 62.1 % market share during the quarter. With 199.70 lakh passengers carried during the same period last year, IndiGo held a 55.7 % market share.

Throughout the October-December quarter of the pre-pandemic year 2019, IndiGo carried 181.82 lakh passengers, translating to a 47.5 % market share.

IndiGo recorded sequential profits in Q2 FY23–24 of ₹189 crore on sales of ₹14,943 crore and Q1 FY2023–24 of ₹3,090 crore on sales of ₹16,683.1 crore.

With its Q3FY2024 earnings, IndiGo was able to outperform the market.

InterGlobe Aviation was forecast to announce net sales of ₹18,120.7 crore and a net profit of ₹2,446.9 crore, according to Prabhudas Lilladher.

Pieter Elbers, the company’s chief executive officer, stated, ‘With these 5 consecutive quarters of profit we continue to recover from Covid’s losses and have now become net worth positive again.’

According to the firm, its ancillary sales of ₹1,760 crore jumped 23.8 % over the same time last year, while its passenger ticket revenues amounted at ₹17,157.2 crore, up 30.3 % YoY.

Earnings before interest, tax, depreciation, amortisation, and rent cost (EBITDAR) profit, also known as consolidated operating profit, was ₹5,475.1 crore during the quarter, compared to ₹3,399 crore during the same period last year.

While revenue passenger miles increased 27.8 % year over year to 31.3 billion, available seat kilometres increased 26.8% on a year-over-year basis to 36.5 billion.

At the end of the December quarter, the low-cost airline’s load factor was 85.8%, compared to 85.1 % during the same period last year.

High fuel costs negatively impacted the operating performance; revenue per available seat kilometre (RASK) was ₹5.34, while cost per ASK (CASK) was ₹4.52.

In accordance to the firm, InterGlobe Aviation’s yield per passenger increased to ₹5.34 in the December quarter from ₹5.38 in the previous year.

In the December quarter, the company’s total debt increased by 15.1% year over year to ₹51,187.5 crore, while its total cash increased by 47.9% to ₹32,428 crore, including ₹19,199.6 crore in free cash.

At the conclusion of the quarter, the airline’s fleet numbered 358 aircraft, up from 334 the previous quarter. Including non-scheduled flights, IndiGo’s daily flight count peaked at 2,016 during the quarter.

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