In a turnaround, InterGlobe Aviation, the parent company of IndiGo, has reported a profit of Rs 188.9 crore for the quarter ending September 2023, as against a net loss of Rs 1,583.33 crore in the same period of the previous year.

Revenue from operationsincreased 19.5 per cent to Rs 14,943 crore (Rs 12,497 crore) on the back of rising demand for domestic travel within India, which has been on an uptrend in the past three quarters.

In Q4 FY22-23, India’s largest airline reported a profit of Rs 919 crore, with sales of Rs 14,160 crore. Additionally, in the first quarter of the fiscal year 2023-24 (Q1 FY23-24), it recorded a profit of Rs 3,090 crore, with sales of Rs 16,683.1 crore.

IndiGo’s Q2 FY24 results exceeded market expectations, as analysts had predicted a bottom-line loss of Rs 2,060 crore, with sales of Rs 14,438 crore.

Also read: InterGlobe Aviation places order for A320 NEO aircraft, shares up

The CEO, Pieter Elbers, highlighted their expansion efforts, including addition of 10 new destinations in recent months, bringing the total number of destinations to 115.

For the quarter, passenger ticket revenues touched Rs 13,069 crore, marking a 17.6 per cent increase year-on-year, while ancillary revenues rose 20.5 per cent to Rs 155.1 crore, compared to the same period last year.

At the operating level, the earnings before interest, tax, depreciation, amortization, and rent costs (EBITDAR) for the quarter amounted to Rs 2,436.4 crore, a significant improvement from an operating profit of Rs 229.2 crore in the same quarter of the previous year.

The available seat km increased by 27.7 per cent year-on-year to 35.3 billion, and revenue passenger km surged 34.3 per cent to 29.4 billion.

The load factor stood at 83.4 per cent at the end of the September quarter, up from 79.2 per cent in the previous year.

However, high fuel costs affected the operating performance, with the revenue per available seat km (RASK) at Rs 4.25 and cost per available seat kmr (CASK) at Rs 4.19. In the previous quarter, fuel costs rose to Rs 5,855 crore from Rs 5,228 crore.

IndiGo reported a drop in yield per passenger, falling to Rs 4.44 in the September quarter, from Rs 5.07.

Its fleet expanded to 334 aircraft at the end of the quarter, up from 316 in the previous quarter. The airline operated a peak of 1,958 daily flights during the quarter, including non-scheduled flights. During Q2 FY24, the low-cost carrier provided services to 39 additional international destinations through strategic partnership.

“Post-closure of the quarter ended September 30, 2023, InterGlobe Aviation Financial Services IFSC Pvt Ltd has been incorporated as a wholly-owned subsidiary of the company, with a proposed investment of Rs 30 crore and issue of corporate guarantees of up to $996 million (or an equivalent amount in Indian rupees or any other currency) to secure the payment obligations of the subsidiary, subject to Reserve Bank of India approval,” the airline informed the exchanges.

The company’s total debt increased by 20.6 per cent year-on-year at Rs 49,391.7 crore in the September quarter. On the other hand, total cash increased by 56 per cent to Rs 30,665.8 crore, including free cash of Rs 18,082.7 crore.

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