IndiGo parent InterGlobe Aviation Ltd reported a net profit of Rs 2,449 crore for Q3 FY25, falling as much as 18 percent from Rs 2,998 crore a year ago, despite continued demand for air travel. The robust profit in the base quarter was due to the major festival season travel falling during the October-December quarter in the previous year, unlike this year.
InterGlobe Aviation's revenue for the fiscal third quarter surged 14 percent to Rs 22,111 crore against Rs 19,452 crore in the same period previous year, driven by a 12 percent increase in available seat kilometers (ASK) and a 13.5 percent rise in revenue passenger kilometers (RPK). The load factor improved by 1.2 percentage points to 86.9 percent.
The airline's cost per available seat kilometer (CASK), excluding fuel, rose sharply by 23.1 percent year-on-year to Rs 3.25, reflecting the impact of inflationary pressures and higher operational costs. Depreciation and amortisation expenses also jumped 33.6 percent during the quarter.
The increased expenses of the airline, including on airport charges, leasing aircraft, grounded planes, along with lower yields are dragged IndiGo's profits in the October-December quarter. Moneycontrol had in November reported that record domestic travel in India wasn't expected to translate into bumper earnings for local airlines.
IndiGo's revenue per available seat kilometre (RASK) stood at Rs 5.44, whereas cost per ASK (CASK) was at Rs 4.83. The company's RASK rose only 1.9 percent on year in Q3FY25 while CASK rose 6.8 percent in the same period, indicating a significant rise in operating costs over revenues. InterGlobe Aviation's yield per passenger fell to Rs 5.43 in the December quarter from Rs 5.48 a year ago, the company said.
IndiGo's EBITDAR (earnings before interest, tax, depreciation, amortisation, and rent) increased 10.7 percent to Rs 6,059 crore, with an EBITDAR margin of 27.4 percent, down 70 basis points from last year. Adjusted for forex impacts, EBITDAR margin improved to 33.7 percent.
IndiGo share price has gained more than 42 percent in the last one year, taking its market capitalisation to Rs 1.6 lakh crore. The stock was in green ahead of the results today, ending up 0.7 percent at Rs 4,162 on NSE.
The airline carried 273.25 lakh passengers, commanding a market share of 63.8 percent during the quarter. In the year-ago period, IndiGo carried 243.10 lakh passengers, commanding a market share of 62.1 percent.
Similarly, IndiGo’s Chief Financial Officer Gaurav Negi, after announcing the airline's Q2 earnings on October 25 had also indicated that demand was expected to slow down in the third quarter of 2024-25 due to the high base of last year.
IndiGo, Negi stated, anticipates a mid-single digit moderation in the Q3 PRASK (passenger revenue per available seat kilometres) compared to last year, when both demand and yields were exceptionally high.
The airline's yield per passenger had already fallen to Rs 4.55 per kilometre in the seasonally weaker September quarter from Rs 5.24 per kilometre in the June quarter as the airline offered discounts to attract customers.
Earlier, in the previous quarter (July-September), IndiGo reported a net loss of Rs 987 crore, hit by a jump in airport fees and charges, aircraft repair and maintenance fees, and fuel expenses.
"These results were driven by robust demand in the market and our ability to cater to that demand supported by lower fuel prices," the company's Chief Executive Officer Pieter Elbers said.
For the quarter, the company said its passenger ticket revenues stood at Rs 19,267.8 crore increased by 12.3 percent YoY and ancillary revenues at Rs 2,153.1 crore rose 22.3 percent compared to the same period last year.
Available seat kilometres rose 12 percent on YoY basis to 40.8 billion, while revenue passenger kilometres rose 13.5 percent on-year to 35.5 billion.
The load factor for the no-frills airline stood at 86.9 percent at the end of the December quarter as against 85.8 percent in the year-ago period.
The airliner had 437 aircraft in its fleet at the end of the quarter up from 410 in the previous quarter. IndiGo operated at a peak of 2,200 daily flights during the quarter, including non-scheduled flights.
IndiGo's total cash reserves stood at Rs 43,781 crore as of December 31, 2024, a 35 percent increase from the same period last year. Free cash grew by 50.5 percent to Rs 28,904 crore, while debt surged 27.3 percent year-on-year to Rs 65,139 crore, mainly due to capitalised operating lease liabilities. The company's total debt rose 27.3 percent on-year to Rs 65,138.5 crore in the December quarter.
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