New Delhi, Aug 2 (PTI) IndiGo on Wednesday reported its highest-ever quarterly profit of Rs 3,090.6 crore in the June quarter, as tailwinds of strong operational performance and favourable market conditions bolstered the financials of the country’s largest airline.
The carrier’s parent, InterGlobe Aviation, also posted its highest-ever quarterly total income of Rs 17,160.9 crore in the first quarter of the current fiscal and also announced plans to set up a venture capital entity.
Besides, the airline said that “single-digit” number of planes are expected to be impacted in the first phase of inspection of engines by Pratt & Whitney for certain anomalies.
IndiGo, which had 316 planes in its fleet at the end of June 2023, had registered a loss of Rs 1,064.3 crore in the 2022 June quarter.
In a release, the airline said in the latest June quarter, it had the highest-ever quarterly profit of Rs 3,090.6 crore and that “reflects strong operational performance, execution of our strategy and favourable market conditions”.
Total income or revenues stood at Rs 13,018.8 crore in the three months ended June 2022.
“We produced strong operational performance and welcomed the highest number of quarterly passengers which enabled us to generate the highest ever quarterly revenue and net profit for the quarter ended June 2023,” IndiGo CEO Pieter Elbers said.
IndiGo has now raked in profit for three consecutive quarters after being hit by the Coronavirus pandemic.
During the June quarter, cash-strapped Go First stopped flying and other airlines, including IndiGo, made efforts to partly fill in the capacity gap.
In the 2023 June quarter, the carrier’s fuel costs declined 12.7 per cent to Rs 5,228.1 crore, while the total expenses marginally fell to Rs 14,070.1 crore.
“Second quarter of fiscal year 2024 capacity in terms of ASKs is expected to increase by around 25 per cent as compared to the second quarter of fiscal year 2023,” the release said.
ASK refers to Available Seat Kilometres and is an indicator of capacity.
Meanwhile, IndiGo will set up a venture capital Limited Liability Partnership (LLP) to make investments in early-stage companies that are into aviation, consumer and allied sectors. It will be set up with an initial investment of Rs 7 crore.
Regarding the latest P&W engine issues, IndiGo Chief Financial Officer Gaurav Negi said the airline has received some information from the company and it will impact a “handful of engines in the first phase”.
“We are working with the OEM (Original Equipment Manufacturer) to assess and minimise any potential impact on our fleet,” he said.
Elbers said “single digit” number of engines will be impacted in the first phase.
“This is a new issue that has been highlighted by the OEM. Here we have to rely on the communication which was shared by P&W about certain probable manufacturing anomalies which are actually leading to additional inspection.
“… We don’t know yet what is going to be the precise impact in the first phase… but of course we are in clear contact and clear coordination with P&W to see what is going to be the precise impact,” he said.
There are still a lot of questions on the precise duration and phasing of the inspection of engines, he added.
According to Elbers, the number of aircraft impacted by the supply-chain challenge issues was in the high thirties. “I would actually label it now around 40”.
At the end of June, IndiGo had a fleet of 316 planes, including 166 A320 neos, 87 A321 neos and two planes on wet lease.
IndiGo had a total cash balance of Rs 27,400 crore, comprising Rs 15,691.1 crore of free cash and Rs 11,709 crore of restricted cash.
Shares of the company closed almost flat at Rs 2,565.75 apiece on BSE. PTI RAM IAS DRR
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