By Nandan Mandayam and Meenakshi Maidas
BENGALURU (Reuters) -IndiGo said it expects the number of aircraft grounded due to Pratt & Whitney engine issues to decrease by early next year, with the Indian airline also reporting its first quarterly profit fall in nearly two years.
A rare powder metal defect in Pratt & Whitney engines that was disclosed last year has grounded hundreds of twin-engined Airbus A320neo aircraft worldwide.
This, along with earlier Pratt engine issues, grounded about a fifth of IndiGo’s fleet, the airline disclosed in November.
“Aircraft on ground remains at mid-70s,” IndiGo’s Chief Financial Officer Gaurav Negi said on a post-earnings call on Friday, adding that the airline would continue to lease more jets to meet demand.
IndiGo, one of the largest customers for the A320 family of planes, has been grappling with higher leasing costs since last year due to the groundings.
The company, India’s biggest airline by market share, has relied on aircraft lease extensions to meet booming travel demand in one of the world’s fastest growing aviation markets.
Earlier in the day, the airline’s operator reported an 11% fall in first-quarter profit as it grappled with higher operating costs and largely unchanged fares.
IndiGo’s leasing costs tripled, while maintenance costs grew 7%. Its total expenses in the quarter rose about 24%, led by a 23% rise in fuel costs.
The low-cost carrier said in June it would receive compensation from Pratt & Whitney for the aircraft groundings, but is yet to disclose the amount.
IndiGo reported record quarterly revenue of $2.3 billion, and forecast high single-digit percentage capacity growth for the second quarter.
($1 = 83.6960 Indian rupees)
(Reporting by Meenakshi Maidas, Nandan Mandayam and Kashish Tandon in Bengaluru; Editing by Sonia Cheema and Shounak Dasgupta)
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