High fuel costs, weak rupee challenge Indigo Airlines

Low cost seems to be the mantra that's working for the aviation sector. Budget carrier Indigo Airlines has posted an 18% profit for FY11 even as full fare carriers continue to bleed, reports CNBC-TV18’s Mehak Kasbekar.
Operational efficiencies and steady earnings from sale and lease-back of aircrafts has helped the Gurgaon-based budget airline post a healthy Rs 650 crore net profit for FY11, up from Rs 550 crore in the previous year. The airline's revenues are up by 48% to Rs 3,946 crore as well. But will the recently launched international operations help maintain its edge?
“We will dedicate about 15 -18% of our total capacity towards the international operations by the end of this financial year,” says Aditya Ghosh, president of the airlines. “We do definitely hope that we break even and make some money in international, but our target is that we keep the whole company and the whole business profitable and sustainable,” he said.
04/10/11 CNBC-TV18/Moneycontrol.com

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Categories: Indigo Airlines Oct 2011