InterGlobe Aviation, the parent company of IndiGo, India’s largest airline, has returned to profitability in the fourth quarter of fiscal 2023. The company recorded a net profit of Rs 919.2 crore, a significant improvement compared to the net loss of Rs 1,681.8 crore in the same period last year.
The strong market demand and higher revenues have contributed to this positive outcome. InterGlobe Aviation has also projected a 5-7% increase in seat capacity, measured by Available Seat Kilometres (ASK), for the upcoming June quarter, reflecting the bullishness in the aviation market.
Excluding a foreign exchange gain of Rs 252.8 crore, the net profit for the quarter amounted to Rs 666.4 crore. The total income for the fourth quarter of fiscal 2023 surged by nearly 78% to Rs 14,600.1 crore, compared to Rs 8,207.5 crore in the same period a year ago.
IndiGo reported passenger ticket revenues of Rs 124,346 million, a growth of 80.6%, and ancillary revenues of Rs 14,459 million, an increase of 36.6% compared to the previous year’s fourth quarter.
IndiGo CEO Pieter Elbers attributed the strong operational and financial results to a combination of robust market demand and focused execution of the airline’s strategy. For the fiscal year ending March 2023, IndiGo reported a profit of Rs 26,540 million, excluding foreign exchange impact. However, including foreign exchange impact, the net loss for the year was Rs 3,058 million. The profits from the third and fourth quarters compensated for the losses incurred in the first and second quarters of the year.
IndiGo ended March 2023 with a total cash balance of Rs 23,424.3 crore, consisting of Rs 12,194.8 crore of free cash and Rs 11,229.5 crore of restricted cash.
Looking ahead, IndiGo anticipates a capacity increase of 5-7% in ASKs for the June quarter compared to the fourth quarter of fiscal 2023. During the March quarter, the airline operated a peak of 1,815 daily flights, including non-scheduled flights.
As of March, IndiGo’s fleet comprised 304 planes, including 162 A320 neos, 79 A321 neos, and 2 A321 freighters.
On the stock market, IndiGo’s shares declined by 1.57%, closing at Rs 2,264 apiece on the BSE.