IndiGo, the nation's leading airline, announced its fifth consecutive profitable quarter, revealing a significant increase in its after-tax profit to Rs 2,998.1 crore during the December quarter (Q3) of 2023. However, despite this financial success, over 70 aircraft of the carrier remain grounded due to ongoing Pratt & Whitney (P&W) engine issues.
InterGlobe Aviation, the parent firm of IndiGo, saw a remarkable jump in its after-tax profit in the third quarter of the fiscal year, surging from Rs 1,422.6 crore in the previous year to an impressive Rs 3,049.1 crore in the latest quarter, excluding foreign exchange losses. The total income of the company in Q3 of the current fiscal rose to Rs 20,062.3 crore, reflecting a substantial increase from Rs 15,410.2 crore in the corresponding period of the previous year.
CEO Pieter Elbers expressed his satisfaction, stating, "For the third quarter of financial year 2024, we reported a profit after tax of 30 billion rupees with a profit after tax margin of 15.4 per cent. With these five consecutive quarters of profit we continue to recover from the losses of Covid and have now become net worth positive again."
During an earnings call, IndiGo CFO Gaurav M Negi acknowledged that nearly 70 aircraft are currently grounded due to various issues, though there has been a slight improvement from previous estimates. He expressed optimism about the situation improving in the coming quarters.
IndiGo's fleet, as of December 2023, comprised 358 aircraft, including a mix of A320 ceos, A320 neos, A321 neos, ATRs, A321 freighters, and B777s.
Negi addressed concerns regarding the grounded planes, particularly those with P&W engines, stating that mitigation measures are in place, including efforts to work on spare engines and optimise the airline's network to meet growing demand amidst supply chain constraints.
During the December quarter, IndiGo's passenger ticket revenues increased by 30.3 per cent, reaching Rs 171,572 million, while ancillary revenues saw a 23.8 per cent increase to Rs 17,600 million compared to the same period last year. The airline also experienced a capacity growth of 26.8 per cent and carried 23.4 per cent more passengers, totalling 27.5 million. Looking ahead, the airline anticipates a capacity growth of 12 per cent in the fourth quarter.
At the close of December 2023, IndiGo boasted a total cash balance of Rs 32,428 crore, comprising Rs 19,199.6 crore of free cash and Rs 13,228.5 crore of restricted cash.
Elbers reflected on the milestones achieved in 2023, emphasising the airline's accomplishment of serving over 100 million passengers and expanding its operations to 118 destinations with 2,000 plus daily flights.