IndiGo Q1 Result: Airline Logs Rs 3,090-Crore Profit On Higher Demand, Lower Fuel Cost

IndiGo's revenue from operations rose 29.8 per cent to reach Rs 16,683.1 in the first quarter of the financial year 2023-24 (Q1FY24) compared to Rs 12,855 crore reported in the same period last year

The rise in profit reflects a sharp rise in domestic travel during the quarter and a notable decrease in average fuel prices.  ( Image Source :Getty )

InterGlobe Aviation, the parent of the country's largest airline IndiGo, reported a net profit of Rs 3,090.6 crore for the quarter ending in June 2023, a turnaround from the net loss of Rs 1,064 crore reported in the same quarter last year. IndiGo's revenue from operations rose 29.8 per cent to reach Rs 16,683.1 in the first quarter of the financial year 2023-24 (Q1FY24) compared to Rs 12,855 crore reported in the same period last year. 

The rise in profit reflects a sharp rise in domestic travel during the quarter and a notable decrease in average fuel prices. 

"We produced strong operational performance and welcomed the highest number of quarterly passengers which enabled us to generate the highest ever quarterly revenue and net profit for the quarter ended June 2023," IndiGo CEO Pieter Elbers said.

The low-cost carrier with 316 planes in its fleet reported that average fuel costs declined 12.7 per cent to Rs 5,228.1 crore, while the total expenses marginally fell to Rs 14,070.1 crore. IndiGo also reported an increase in its passenger ticket revenues, reaching Rs 1,668.31 crore for Q1 FY24, up 29.8 per cent compared to Q1 FY23. Additionally, the company's ancillary revenues surged to Rs 47.78 crore, nearly tripling in comparison to the same period last year.

"Second quarter of fiscal year 2024 capacity in terms of available seat kilometers (ASKs) is expected to increase by around 25 per cent as compared to the second quarter of fiscal year 2023," the release said.

During the quarter, InterGlobe Aviation's operating performance, EBITDAR (earnings before interest, tax, depreciation, amortisation, and rent cost) profit or consolidated operating profit stood at Rs 5,210.9 crore marking a significant increase from the operating profit of Rs 716.9 crore recorded in the same quarter of the last year.

Furthermore, the load factor for the airline stood at 88.6 per cent at the end of the June quarter, improving from the 79.6 per cent load factor reported in the year-ago period.

As of June 2023, IndiGo's fleet consisted of 316 planes, including 166 A320 neos, 87 A321 neos, and two planes on wet lease. The airline has a total cash balance of Rs 27,400 crore, with Rs 15,691.1 crore of free cash and Rs 11,709 crore of restricted cash.