Indigo earns record profit in fourth quarter due to boom in air travel

Total income during the quarter grew 78% compared to a year ago 14,600 crore, the low-fare airline said, citing strong demand and higher other income including interest income on savings, compensation from engine manufacturers and viability-gap funds received from the government.

The March quarter of FY22 was impacted by weak travel sentiment amid the rapid spread of the Omicron variant of COVID-19. As a result, the company reported a loss 1,681.8 crore and total income 8,207.5 crore during this period.

InterGlobe reported return (or revenue earned) per passenger kilometer flown As against 4.85 per km 4.40 per km in the same quarter last year.

During the latest quarter, India’s average daily air passenger traffic was recorded at 420,000, surpassing the traffic in the pre-pandemic year of 2019, according to data from the Directorate General of Civil Aviation, and also compared to the March quarter of FY2022 is more. Aviation.

InterGlobe expects total capacity to grow by 5-7% in terms of available seat kms or passengers carried in the June quarter of FY24 as compared to the March quarter of FY2023. Notably, the first quarter will see high summer travel at Go First, a time that suspended operations for about 7% of total passengers. For the full year, InterGlobe posted a net loss 305.8 crores. The airline had reported the loss 6,161.8 crore in the last financial year, which ended in March 2022.

As of 31 March, the airline’s fleet consisted of 304 aircraft, including 21 A320 Neo (current engine option), 162 A320 Neo (new engine option), 79 A321 Neo, 39 ATRs, two A321 freighters and one Boeing 777. The airline made two additions to its fleet during the quarter.

InterGlobe said demand will continue to be strong, pointing to its booking numbers.

“Demand remains strong with good yield. Advance booking is very encouraging. We aspire to grow north of the mid-teens in the next fiscal year,” Chief Executive Officer Peter Albers told analysts in a post-earnings conference call.

After a year of recovery, InterGlobe aims to double its size and scale by the end of the decade. In this direction, the company with about 32,000 employees plans to add 5,000 more this year. The airline carried 85.6 million passengers in FY23 and plans to increase passenger traffic on its network to 100 million in this financial year.

IndiGo, a Pratt & Whitney customer like Go First in India, said that currently, its grounded aircraft count is as high as 30.

“Apparently, the situation is stabilizing but not improving,” Albers said, adding that the airline is in talks with the engine manufacturer to resolve the supply issues.