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InterGlobe Aviation Q4 profit plunges 73%, blames increase in fuel prices
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
InterGlobe Aviation, the operator of India’s largest airline IndiGo, reported a 73.3% fall in profit at Rs 117.6 crore due to an increase in fuel prices, decline in yields and the foreign exchange impact. The airline, India’s biggest in terms of the number of planes and passengers carried, posted a profit of Rs 440.3 crore …
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InterGlobe Aviation, the operator of India’s largest airline IndiGo, reported a 73.3% fall in profit at Rs 117.6 crore due to an increase in fuel prices, decline in yields and the foreign exchange impact.
The airline, India’s biggest in terms of the number of planes and passengers carried, posted a profit of Rs 440.3 crore a year ago.
Total expenses jumped 30.2% to Rs 5,891 crore, including a 33.5% increase in fuel costs in the January-March quarter.
Revenue from operations increased to Rs 5,799.1 crore against Rs 4,848.2 crore for the last quarter, InterGlobe said in a statement.
Operating profit or EBITDA (earnings before interest, tax, depreciation and amortisation) was down 74.5% to Rs 129.8 crore against Rs 508.1 crore YoY.
IndiGo also had to cancel hundreds of flights in March when several in-flight engine failures prompted India’s aviation regulator to ground eight of the airline’s Airbus A320neo aircraft fitted with certain Pratt & Whitney engines.
The airline managed to transfer passengers to other flights, however, minimising revenue losses.
Revenue per available seat kilometre – a measure of its operating earnings – fell over three percent to Rs 3.40 in January-March.
Passenger yields, which gauge the average fare paid per mile per customer, dropped over five percent.
However, IndiGo expects a 25% rise in available seat kilometres, a measure of the airline’s passenger carrying capacity, in the fiscal year that began on April 1.
The company announced on Friday (April 27) that its president, Aditya Ghosh, would step down after 10 years with the company and it would consider naming Gregory Taylor, an airline sector veteran, as his successor in the coming months.
“We are positive on InterGlobe. However, given this significant miss in earnings, we will be revising our estimates and view based on what we hear on the call. High crude prices also remain a challenge,” said Madhukar Ladha, Analyst at HDFC Securities.
“Ended the quarter with a fleet of 159 aircraft and added a net of 6 aircraft including 3 ATR,” said the company.
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