Interglobe Aviation, the operator of IndiGo, has announced stellar third-quarter results, showcasing significant growth in profit propelled by robust air travel demand and increased fares during a seasonally favorable period.
Strong Profit Growth
For the quarter ending December 31, the company reported a standalone profit of 29.98 billion rupees ($362 million), marking a remarkable two-fold increase compared to 14.18 billion rupees in the corresponding period last year.
Market Dominance and Fleet Size
IndiGo, renowned as India’s largest low-cost carrier, boasts a fleet of 358 aircraft, solidifying its position with a commanding market share exceeding 62%.
Factors Driving Performance
Analysts attribute the company’s exceptional performance to consecutive festive and wedding seasons, coupled with the excitement surrounding the men’s cricket World Cup hosted in India.
Revenue Surge and Fare Increase
IndiGo’s revenue surged by 30% to reach 194.52 billion rupees, driven primarily by higher fares in response to increased demand.
Expenses and Operational Metrics
While expenses rose by 22%, predominantly influenced by an 18% increase in fuel costs – accounting for 40% of the total expenditure – the company witnessed a significant narrowing of foreign exchange losses by over 91%.
IndiGo’s load factor, indicating the utilised passenger carrying capacity, improved to 85.8% from 85.1%, reflecting efficient operations.
Positive Yield and Stock Performance
Yield, the average revenue earned per passenger kilometre, recorded a 2% increase, reaching 5.48 rupees per kilometre.
In response to the impressive financial results, IndiGo’s shares surged by 2% on Friday, culminating in a record-high closing price of 3,127.1 rupees.
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