In a sign that crisis at Jet Airways is benefitting competing airlines, IndiGo on Monday reported a profit of Rs 589.6 crore for the January-March quarter in FY19, compared to Rs 117.6 crore in the corresponding period of FY18.
This is nearly a five-fold jump in profits mostly due to stabilising crude prices and IndiGo increasing its market share. The carrier's total income was up by 35.5 per cent to Rs 8,259.8 crore in the quarter ended March 2019 compared to Rs 6,097.7 crore in the year-ago period, the company said in a statement.
However, the no-frills carrier's profit for the entire financial year stood at a mere Rs 156.1 crore, 93 per cent lower than the net profit in the financial year 2017-18 which stood at Rs 2,242.4 crore. The net profit for the entire fiscal was down due to high fuel prices and a weak rupee. However, the crude oil prices stabilised in the latter part of fiscal.
In a call with journalists and analysts, IndiGo CEO Ronojoy Dutta said that Jet Airways shut down helped in February and March, but the impact will be limited to some international routes by June. A total of 285 former Jet pilots have joined the airline which in turn has helped IndiGo overcome its pilot shortfall.
"Fiscal 2019 was a tough year for the airline industry in India because of high fuel prices, weak rupee and intensely competitive environment," Dutta said.
"However, it is a tale of two halves for IndiGo, with the first half of the year incurring losses and the second half of the year experiencing a sharp recovery," he added.
27/05/19 Pankaj Upadhyay/Business Today
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This is nearly a five-fold jump in profits mostly due to stabilising crude prices and IndiGo increasing its market share. The carrier's total income was up by 35.5 per cent to Rs 8,259.8 crore in the quarter ended March 2019 compared to Rs 6,097.7 crore in the year-ago period, the company said in a statement.
However, the no-frills carrier's profit for the entire financial year stood at a mere Rs 156.1 crore, 93 per cent lower than the net profit in the financial year 2017-18 which stood at Rs 2,242.4 crore. The net profit for the entire fiscal was down due to high fuel prices and a weak rupee. However, the crude oil prices stabilised in the latter part of fiscal.
In a call with journalists and analysts, IndiGo CEO Ronojoy Dutta said that Jet Airways shut down helped in February and March, but the impact will be limited to some international routes by June. A total of 285 former Jet pilots have joined the airline which in turn has helped IndiGo overcome its pilot shortfall.
"Fiscal 2019 was a tough year for the airline industry in India because of high fuel prices, weak rupee and intensely competitive environment," Dutta said.
"However, it is a tale of two halves for IndiGo, with the first half of the year incurring losses and the second half of the year experiencing a sharp recovery," he added.
27/05/19 Pankaj Upadhyay/Business Today
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