IndiGo back in black on robust market demand

Fuelled by robust market demand and higher revenues, InterGlobe Aviation on Thursday flew into the profitability zone, raking in a net profit of Rs 919.2 crore in the March quarter.

The parent of the country's largest airline IndiGo, which had faced turbulence last year, had a net loss of Rs 1,681.8 crore in the three months ended March 2022.

Reflecting the bullishness in the aviation market, the carrier has forecast a 5-7 per cent rise in Available Seat Kilometres (ASK), an indicator of seat capacity, in the June quarter.

The airline has reported its "best-ever fourth-quarter net profit of Rs 9,192 million for the quarter ended March 2023".

Excluding the foreign exchange gain of Rs 252.8  crore, the net profit aggregated to Rs 666.4 crore, according to a release.

The total income surged nearly 78 per cent to Rs 14,600.1 crore in the fourth quarter of the last fiscal.

In the same period a year ago, the total income was Rs 8,207.5 crore.

"For the quarter, our passenger ticket revenues were Rs 124,346 million, an increase of 80.6 per cent and ancillary revenues were Rs 14,459 million, an increase of 36.6 per cent compared to the same period last year," the release said.

IndiGo CEO Pieter Elbers said that with a combination of robust market demand and focused execution of its strategy, the March quarter was the second consecutive quarter wherein the airline produced strong operational and financial results.

"For the year ended March 2023, IndiGo reported a profit of Rs 26,540 million, excluding foreign exchange impact. Including foreign exchange impact, IndiGo reported a net loss of Rs 3,058 million for the year.

"The profits of the third and the fourth quarters largely compensated for the losses incurred in the first and the second quarters," the carrier said.

At the end of March, IndiGo's total cash balance stood at Rs 23,424.3 crore, comprising Rs 12,194.8 crore of free cash and Rs 11,229.5 crore of restricted cash.

"The total debt (including the capitalised operating lease liability) was Rs 4,48,542 million," the release said.

About outlook, the airline said in the June quarter, capacity in terms of ASKs is expected to increase by around 5-7 per cent compared to the fourth quarter of fiscal 2023.

During the March quarter, IndiGo operated at a peak of 1,815 daily flights, including non-scheduled flights.

The carrier had 304 planes, including 162 A320 neos, 79 A321 neos and 2 A321 freighters at the end of March.