Mumbai/New Delhi: In an indication of competition in the sector impacting severely the margins of domestic airlines, the country’s largest no-frills air carrier, IndiGo, has reported a 60 per cent drop in net profit at Rs 317 crore for the financial year ended March 2014.
This was despite a 17.5 per cent rise in revenue to Rs 11,117 crore. IndiGo had a five-fold increase in net profit to Rs 787 crore in 2012-13, on revenue of Rs 9,458 crore.
Experts say the margin was impacted primarily due to currency depreciation, rise in the price of aviation turbine fuel and pressure on account of fare wars in the home market.
IndiGo is unlisted and does not disclose quarterly results. The figures were available from its filing to the registrar of companies. IndiGo did not respond to an email query, seeking comments on the financials.
This is the sixth year in continuity that it has had a net profit since it broke even in 2008-09. All other airlines, with the exception of GoAir, reported losses for 2013-14. The two listed carriers, SpiceJet and Jet Airways, closed FY14 with losses of Rs 1,003 crore and Rs 3,667 crore, respectively.
08/10/14 Business Standard
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This was despite a 17.5 per cent rise in revenue to Rs 11,117 crore. IndiGo had a five-fold increase in net profit to Rs 787 crore in 2012-13, on revenue of Rs 9,458 crore.
Experts say the margin was impacted primarily due to currency depreciation, rise in the price of aviation turbine fuel and pressure on account of fare wars in the home market.
IndiGo is unlisted and does not disclose quarterly results. The figures were available from its filing to the registrar of companies. IndiGo did not respond to an email query, seeking comments on the financials.
This is the sixth year in continuity that it has had a net profit since it broke even in 2008-09. All other airlines, with the exception of GoAir, reported losses for 2013-14. The two listed carriers, SpiceJet and Jet Airways, closed FY14 with losses of Rs 1,003 crore and Rs 3,667 crore, respectively.
08/10/14 Business Standard
