IndiGo, the no-frills carrier has posted its latest quarterly earnings report for the quarter ending in December 2018 and despite rising costs in the industry, the airline has managed to post a profit as opposed to many other airlines. The carrier has been making constant inclusion in its fleet to expand its international and domestic operations. Recently, IndiGo posted its quarterly results for the quarter ending on December 28, 2018, and reported a post-tax profit of Rs 1,909 million and EBITDAR of Rs 16,814 million. However, the figures are not so rosy as they indicate profit. It is worth noting that in the same period last year, IndiGo reported an after-tax profit of Rs 7,620 million and an EBITDAR of Rs 20,019 million.
IndiGo Faces Falling Revenues Due to Rising Fuel Costs
IndiGo in its financial report for the October-Dec quarter reported that the profitability for the airline was impacted severely because of the rising fuel costs and operational costs which are the major factors plaguing the aviation industry currently. IndiGo also said that the Basic Earnings per share was Rs 4.97 for the quarter ending December 2018. Notably, basic earnings per share is an important factor to consider for promoters’ interest. Even with falling profits, IndiGo showed a strong balance sheet with total cash of Rs 141,361 million including free cash of Rs 46,183 million. Another thing to note is that IndiGo significantly expanded its international presence in this period as it added 6 new international destinations and 22 new international routes. Additionally, the airline solidified its first codeshare agreement with Turkish airlines which would help both the airlines in growing with mutual cooperation.
19 New Aircraft in Fleet in Quarter Ending December
The low frills carrier also reported that its total debt stood at Rs 24,759 million and also added that all of its debt was aircraft related. It is also crucial to know that IndiGo boasts of having a large fleet among private aviation players which consists of 208 aircraft including 127 A320ceos, 66 A320neos, 1 A321neo and 14 ATRs. In the recent quarter, the airline added 19 new planes to its fleet.