IndiGo Operator InterGlobe Aviation's December Quarter Profit Slumps 75%

InterGlobe Aviation, owner of the country's biggest airline by market share IndiGo, said its third-quarter profit slumped 75 per cent, dragged down by higher crude prices and intense competition. Its net profit was Rs 191 crore ($26.79 million) in the three months ended December 31, compared with Rs 762 crore a year earlier, the company said.

Domestic airlines had a rough year in 2018, plagued with higher crude prices and a weak rupee. Competition intensified to the extent that rival Jet Airways has been left discussing a restructuring plan with its lenders.

InterGlobe posted a quarterly loss three months ago, its first since debuting on the stock market in 2015.

InterGlobe's expenses surged 50.6 per cent to Rs 8,038 crore over October to December, while its revenue per available seat kilometre - a measure of its operating earnings - fell 3 per cent to Rs 3.70 in the third quarter.

Passenger yields, which gauge the average fare paid per mile per customer, however, climbed 3.7 per cent.

InterGlobe's interim CEO Rahul Bhatia pointed out that the firm's revenue per available seat kilometre improved over the last two months.

InterGlobe expects available seat kilometres - a measure of the airline's passenger carrying capacity - to rise 34 per cent in the fourth quarter.

IndiGo added 16 Airbus A320neos planes to its fleet during the quarter. The airline has been forced to ground its A320neo aircraft on several occasions due to issues with the plane's Pratt & Whitney engines. The country's air safety watchdog last week ordered extra checks on the aircraft as part of new safety protocols.

($1 = Rs 71.28)