IndiGo Q3 profit falls 75% to Rs 191 crore

IndiGo Q3 profit falls 75% to Rs 191 crore
IndiGo Q3 profit falls 75% to Rs 191 crore

InterGlobe Aviation, the parent of IndiGo, on Wednesday reported a 75 per cent fall in profit after tax at Rs 190.9 crore in the December quarter as high fuel prices and currency depreciation hurt its bottom line.

The airline had a profit after tax of Rs 762 crore in the corresponding period of 2017-18?. According to a release, the carrier's total income rose over 28 per cent to Rs 8,229.4 crore in the three months ended December 2018. In the year-ago period, the same stood at Rs 6,409 crore. "Profitability was adversely impacted by high fuel prices and currency depreciation," the airline said in a presentation to analysts and institutional investors.

IndiGo's co-founder and interim CEO Rahul Bhatia said the airline posted a profit of Rs 190 crore in a continued difficult environment and have grown its fleet by one aircraft a week for a 33 per cent capacity increase for the December quarter.
"Very few airlines around the world have the operational resilience to absorb such rapid growth and I want to thank all our employees for being up for this challenge. Just as importantly, we find that the markets we serve are responding very positively to this new capacity," he said.

Shares of IndiGo settled at Rs 1,107.95 apiece, down 0.89 per cent on the BSE.

While answering the questions of analysts regarding company's international expansion plans, Bhatia said: "On the specific question on if we have given up going to London or to Europe, the answer is no. It is very much alive and you are looking at it. We will take a decision soon. At this point, it is neither yes nor no."

He added: "We have a huge advantage in going international in that we are going there on single-aisle planes...In those (international) markets where we are going to fly with our single-aisle low-cost strategy, we will have huge profit margins. So, we are very excited about our growth opportunities internationally.

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