InterGlobe Aviation, the parent firm of private carrier IndiGo, on Friday posted an 11.7% fall in its first-quarter profit figures amid a spate of operational issues, including higher fuel costs and a brief hit to services amid the Delhi T1 terminal roof collapse.
What Happened: India’s top airline said its net profit for the quarter ended June 30 came in at ₹2,728.8 crore, compared with the ₹3,090.6 crore it earned in the same quarter a year ago. The figure beat analyst estimates of ₹2,282.5 crore.
Meanwhile, the firm’s revenue from operations jumped 21.37% to ₹20,248.9 crore in the quarter, compared with the ₹16,683 crore it made a year ago. This was ahead of street expectations of ₹18,328 crore.
Positive Outlook: The airline also said that it expects capacity in terms of available seat kilometres (ASKs) to increase by “high single digits” year on year.
Yield during the quarter increased by 1.3% to ₹5.24 while load factor reduced by 1.9 points to 86.7%, the airline said — with a large hit to the key metric coming due to the heatwave in May and the Delhi terminal collapse in June.
Last month, the roof of Terminal 1 at Delhi Airport collapsed, leading to one death and multiple injuries. The collapse, reportedly triggered by heavy rainfall, also resulted in the suspension of flights and widespread chaos.
The airline previously said it closed the first quarter with 36.3 billion ASKs, a growth of 11% and in line with its guidance.
In April, Indigo had placed orders for 30 wide-body crafts from Airbus. In June, the aviation company placed orders for 500 aircraft from the French company.
Issues with engine make Pratt & Whitney have affected IndiGo since January, grounding a large part of its fleet. Delays in the delivery of parts from original equipment manufacturers have stunted the carrier’s performance in the near term, though most analysts predict growth towards the end of the year, helped along by likely price hikes.
However, brokerages expect the ongoing issues to weigh on IndiGo’s profit numbers for FY25.
Price Action: IndiGo’s share price ended the session up 1.15% at ₹4,483 on Friday. The stock has climbed nearly 50% so far this year.
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