Home / Companies / Company Results /  IndiGo posts record revenue in Q3, eyes international foray

InterGlobe Aviation, which runs IndiGo airline, posted its highest-ever quarterly revenue of 15,410.2 crore in the December quarter, up 63% from the year earlier and 20% sequentially.

Indigo said robust demand on account of the peak travel season was the reason behind topline growth. Net profit for India’s largest airline rose to 1,422.6 crore, compared to a net loss of 1,583.3 crore in the September quarter.

The cost-per-available-seat- km or the unit cost rose 18% from the year ago to 4.77 but fell 7.3% sequentially in a relief to the airline. The reduction in fuel price and lower losses due to foreign exchange during the quarter helped the sequential decrease of costs, the firm said.

The new price mechanism for aviation turbine fuel, which is benchmarked on MOPAG or Mean of Platts Arab Gulf, also favoured airlines in reducing fuel costs, it added.

However, jet fuel prices in the December quarter were still 50% higher than a year earlier.

Yield for the airline rose by a fourth on year to 5.38 per km and 6% sequentially. While the yields for the ongoing quarter have softened, they are higher than the pre-covid levels, chief financial officer Gaurav Negi said in the post-earnings conference call.

It has cash of 21,924.7 crore including 10,612.5 crore free cash. Total debt for the airline, including its capitalised operating lease liability, stood at 44,475.2 crore.

As of 31 December, the airline fleet included 302 aircraft. It added 19 aircraft in 2022.

The firm expects capacity in 2023-24 to grow north of mid-teens, chief executive officer Pieter Elbers said. It awaits delivery of over 500 aircraft.

Along with other global carriers, IndiGo is facing delay in aircraft deliveries due to supply chain issues. It has opted for extensions on some expiring leases of the Airbus A320ceo (current engine option) while awaiting delivery of more fuel-efficient A320neo. It recently started operating wide-body aircraft to expand capacity on Delhi-Istanbul route by wet leasing Boeing 777 planes. The airline has said the wide-body operations are a “temporary" option for boosting capacity.

The airline has also received credit from aircraft and engine manufacturers for the delay in delivery of new aircraft, and delayed delivery of spare parts which has resulted in grounding of 10-11% of its fleet.

The company management said IndiGo is working with original equipment manufacturers to get adequately compensated.

For 2023, the airline aims to increase capacity deployment on international routes to 30% from the current levels of 23%. IndiGo has also identified several destinations, such as Nairobi and Jakarta, to increase its international network. The airline is also optimistic about resuming operations in China, the management added. “We will continue exploring strategic partnerships in the future which will allow global visibility," Elbers said.

The airline operates 1,700 daily flights and is witnessing higher demand for the March quarter as forward bookings “look good" and fuel prices are stable. “We expect to close FY23 operationally profitable excluding the impact of forex," Negi said.

The company said that cost leadership is the essence of its profitability and will continue to focus on its own strength to deal with competition, including the airlines under the Tata Group.

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