InterGlobe Aviation, the parent company of IndiGo, today declared results for the 3rd quarter of Financial year 2022-23. The airline has posted its highest ever quarterly profit.
IndiGo has posted a net profit of ₹1,422.6 crores for the December quarter of FY2022-23. This is a more than 1000% rise in net profit against a net profit of ₹129.79 crore in the year ago for the same period. This is a good bounce back from the ₹1,583 crore loss it posted in the September quarter of FY2022-23. This is also its highest ever quarterly profit, surpassing its previous record of ₹1,203 crores quarterly profit in FY2019-20.
The revenue also rose by 61% to ₹14,932 crore in the quarter under review from ₹9294 crore in the year ago period.
For the quarter, the revenue from passenger ticket sales was ₹13,162.4 crore, an increase of 63% and ancillary revenues were ₹1422.2 crore, an increase of 24.6% compared to the same period last year. It seems that IndiGo made money just from the ancillary revenues as the total profit is almost the same as that number. 😉
Total expenses for the quarter were ₹13,986.9 crores an increase of 49.6% over the same quarter last year. The passenger load factor stood at 85.1% for the quarter.
Third quarter performance was strong both operationally and financially in the backdrop of robust demand for air travel. The wide range of initiatives that were set in motion across the organisation have started to yield results. With a modern fleet of over 300 aircraft, we continue to serve the market with further capacity growth planned across domestic and international sectors.said Pieter Elbers, CEO, IndiGo.
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This is promising!
People say that investing in the Indian aviation industry is very risky, given how volatile it is. However, time and again, IndiGo has proved all of those people wrong.
In a market where margins are very thin and returns are not guaranteed, IndiGo has turned a profit which is highly commendable.
The winter period in India is generally a peak season for airlines in India where the combination of school holidays, multiple festivals and high traffic in general means that it ms a money-spinning season for Indian airlines. Stakeholders in the Indian aviation industry had been expecting a strong performance from IndiGo for this quarter and the airline has delivered just that.
While IndiGo is a low-cost carrier (LCC), Vistara – a full-service carrier (FCC) – has also managed to remain profitable until now in this financial year with revenue crossing $1 billion. This just shows that both the products can work well in India, though the LCCs have a bit of an edge in terms of net profit, given that the operation costs are less compared to that of FCCs.
IndiGo has shown the grit to face the many challenges which the Indian aviation industry poses and has always given its best, which is always visible in its financial results.
Meanwhile, on 1st February 2023, IndiGo launched wide-body aircraft operations for the first time ever with Boeing B777 flights to Istanbul.
Featured image by IndiGo
What do you think of IndiGo’s December quarter results? Let me know in the comments section below.