IndiGo's 2012 profit will be a fraction of last year's Rs 650 cr: Aditya Ghosh

Hyderabad: IndiGo, India's most profitable airline, is witnessing a slump in profits in FY 2012 on the back of higher fuel costs and low margins, airline's president Aditya Ghosh told Business Standard here on Wednesday.
The Gurgaon-based low cost carrier had seen a 18% growth in profits to Rs 650 crore in FY2011 but is now feeling the pinch of adverse operating environment. With 51 planes and nearly 20% market share IndiGo is the second largest airline by passengers flown.
"Margins were under huge pressure because average price of fuel is now higher than what it was in 2009. There has been a growth in revenue and we will turn out to be profitable at end of the year. It will be much smaller profit than we have done in previous year,'' he said.
Ghosh refused to divulge the profit figure for 2012 but said it "will be a fraction'' of Rs 650 crore profit which it made last year.
"For us profitability means that we are able to get spare parts on time, pay salaries on time, maintain integrity of schedules and plan for growth," he stated.
According to Ghosh, India's aviation growth story can sustain if the goverrnment incentivises and rewards efficient operators.
14/03/12 Aneesh Phadnis/Business Standard

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Categories: Indigo Airlines Mar 2012