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IndiGo Q1 profit falls 97% YoY to Rs 28 crore on rising fuel costs, forex woes

India's largest airline in terms of market share cited adverse impact of foreign exchange, high fuel prices and the competitive fare environment for fall fall in profitability.

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IndiGo Q1 profit falls 97% YoY to Rs 28 crore on rising fuel costs, forex woes

Budget carrier IndiGo's parent InterGlobe Aviation on Monday reported a 96.6 per cent decline in net profit at Rs 27.80 crore for June quarter. India's largest airline by market share had reported Rs 811.10 crore profit in the year-ago quarter. The aviation company cited adverse impact of foreign exchange, high fuel prices and the competitive fare environment for fall fall in profitability.

Aircraft fuel costs rose 54.4 per cent YoY during the quarter to Rs 2,715.60 crore compared with Rs 1759.2 crore in the year-ago quarter. However, sales from operations rose 13.2 per cent to Rs 651.20 crore in the quarter, compared with Rs 575.29 crore in the year-ago period, it said in a regulatory filing.

"While we faced headwinds during the quarter, we remain focused on executing our long term plan. We added capacity into new routes and destinations domestically and also continued to connect international destinations to various cities in India," IndiGo co-founder and interim CEO Rahul Bhatia said in a statement.

The passenger ticket revenues for the quarter rose 13.6 per cent to Rs 5,769.40 crore while ancillary revenues were up 16 per cent at Rs 682.70 crore.

As of June 2018, the Gurugram-based company had a fleet of 169 aircraft including 124 A320ceos, 36 A320neos and 9 ATRs; a net increase of 10 aircraft during the quarter. The low-cost carrier, which flies 4 out of 10 Indians, operated a peak of 1,157 daily flights including international operations during the quarter

Total expenses for the quarter jumped by 40.5 per cent year-on-year to Rs 678.70 crore, while fuel cost shot up by 54.5 per cent to 271.56 crore, from Rs 175.92 crore in the year-ago period.

Besides, yield or average ticket price dropped to Rs 3.62 per km in the June quarter, against Rs 3.83 per km in the same period last year.

The company's stock ended 0.23 per cent lower at Rs 1,004.25 apiece on the BSE today, against 0.42 per cent jump in the benchmark.

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