India’s biggest airline by market share IndiGo has reported a five-fold profit jump in the quarter ended in March 31. The airline’s net profit rose to INR 5,896 million, an increase of 401.2% compared to the same period last year.
Jet Airways’ closure was IndiGo’s gain; the financial result clearly shows. Other factors that might have influenced IndiGo’s performance could be the decline in Brent crude prices and also the increase in investment in the aviation sector.
The company recorded the revenue from operations of INR 284,968 million, a 23.8% rise compared to the last year.
IndiGo’s market share rose to 49.9% in the quarter ended in March 2019. Total income for the Q4 was INR 82,598 million, an increase of 35.5% over the same period last year. For the quarter, the passenger ticket revenues were INR 70,373 million, an increase of 40.2% and ancillary revenues were INR 8,264 million, an increase of 24.1% compared to the same period last year.
Total expenses for the quarter ended March 2019 were INR 76,430 million, an increase of 28.9% over the same quarter last year. The total debt as of March 31, 2019, was INR 24,292 million.
Commenting on the financial performance of IndiGo, the Chief Executive Officer Ronojoy Dutta said, Fiscal 2019 was a tough year for the airline industry in India because of high fuel prices, weak rupee and intensely competitive environment. However, it is a tale of two halves for IndiGo, with the first half of the year incurring losses and the second half of the year experiencing a sharp recovery. Looking ahead, it is difficult not to be bullish about the future. We see plenty of opportunities for profitable growth in our network, and with a robust delivery stream of new aircraft, we are well positioned to capitalize on this growth.
The airline currently has 217 aircraft comprising of 130 A320ceos, 71 A320neos, 1 A321neo and 15 ATRs. In Q4 ended in March 2019, IndiGo added nine aircraft. IndiGo offers services to 68 destinations, including 16 international cities.
IndiGo was awarded the Best low-cost Airline – Asia at the TripAdvisor Travelers’ Choice Award 2019 third time in a row. IndiGo was also awarded the ‘Passenger Choice Award’ for being the ‘Best low-cost carrier in Asia and South Pacific’ at the APEX Asia Awards 2019.