IndiGo profit declines 7% on cheaper fares

InterGlobe Aviation, the parent company of IndiGo, on Monday reported 7.3% decline in net profit for the quarter ending June 30.

The President of the company stated that the drop in revenues was primarily due to cheaper fares offered by other airlines.

“We have posted yet another profitable quarter. However, profitability was lower than last year primarily because of competitive fare pressures. We have reduced our debt by Rs 4,589 million (458.9 crore) during the quarter,” Aditya Ghosh, Company’s President said in a statement.

The net profit of the company stood at Rs 591.78 crore as against Rs 638.90 crore in the same period last year.

The company reported EBITDAR revenue of Rs 1,553.76 crore with an EBITDAR margin of 33.9%.

Total income from operations in the first quarter for FY17 increased by 8.5% to Rs 4,545.19 crore, against Rs 4,188.88 crore in 2015.

Passenger revenue for the quarter under review also increased by 6.9% to Rs 3,971.73 crore.

According to the Directorate General of Civil Aviation (DGCA) report IndiGo had reported ‘On-Time Performance’ of 83.3%. This is higher than 80.6% reported last year.

The company’s cancellation rates were the lowest among all other airlines for the month of June.

The company’s share price closed down 1.56% at Rs 973.95 per share.

IndiGo recorded only 0.2% cancellation rate as per overall cancellations from all other airlines.

Their percentage share of passenger complaints was also among the lowest, reporting only 0.3% of the overall complaints form passengers.