Tuesday, August 01, 2017

IndiGo reports highest ever quarterly profit: How the airline is changing its fundamentals to stay ahead

New Delhi: India’s largest airline by passengers and the only one with a consistent track record of profits, IndiGo, has just reported an almost Rs 9 crore daily net profit in the first quarter ending June 30. It has obviously beaten analysts’ estimates about its profitability by posting the highest ever quarterly profit in this journey. For Q1, IndiGo reported revenue of Rs 5,753 crore, a growth of 26 percent year on year and 19 percent over the previous quarter. Net profit was Rs 811 crore , a growth of 37 percent year-on-year and 84 percent versus the previous quarter. Revenue per available seat kilometre (RASK) increased by 5.5 percent while cost per available seat kilometre (CASK) increased by 1.3 percent.  This airline now commands  nearly 40 percent overall market share but on non-metro routes, it control over half the market. Put simply, this means that 4 in 10 domestic fliers choose IndiGo but on non-metro routes, every second flier chooses this airline.
01/08/17 Sindhu Bhattacharya/First Post