By – Shubhendra Singh Rajawat
IndiGo Q3 Results: Net income increased 53% to 29.98 billion rupees ($362 million) in the three months ended December 31, according to IndiGo.
IndiGo, India’s largest airline, posted a profit for the sixth consecutive quarter, as the budget carrier increased its share of passenger traffic during the period.
IndiGo’s net income increased 53% to 29.98 billion rupees ($362 million) in the three months ending December 31, according to a stock exchange filing released Friday. The airline outperformed Bloomberg’s consensus estimate of 21.27 billion rupees.
Revenue for the third quarter exceeded expectations, reaching 194.5 billion rupees, 30% higher than the same period last year. Fuel expenses increased by 18%. Its seat capacity increased by 26.8% over the period.
IndiGo is expanding capacity to capture a larger share of what is one of the world’s fastest-growing aviation sectors. Its already sizable proportion, currently at 62%, has been expanding as rival SpiceJet Ltd. struggles financially, and another budget carrier, Go Airlines, filed for insolvency and ceased operations in May.
Last year, IndiGo purchased 500 planes from Airbus SE, which might help it defend its position against an expanding Air India Ltd.
IndiGo’s out-of-service aircraft have grown to the “mid-70s” from 40 the previous quarter due to mandatory Pratt & Whitney GTF engine checks, according to Chief Financial Officer Gaurav Negi during an earnings call. To avoid a capacity problem, the carrier will use wet leasing aircraft, he said.
Still, it plans to raise seat capacity by 12% in the fourth quarter compared to the previous year.
The airline flew 24.3 million passengers from October to December, a 23% increase over the previous year, according to the country’s aviation regulator.