IndiGo Q3 Results: Net profit soars over 1,000% to Rs 1,422 crore as air travel takes off

IndiGo

InterGlobe Aviation Ltd, the parent company of budget carrier IndiGo, on February 3 posted an eleven-fold jump in third quarter ended December 31, 2022, led by a pick up in demand for air travel.

The airline's profit came in at Rs 1,422.6 crore in the quarter under review as against a profit of Rs 129.8 crore in the year-ago period.

Revenue from operations surged 61 percent to Rs 14,932 crore in the third quarter as against Rs 9,294 crore a year ago.

IndiGo's total income jumped to Rs 15,410.2 crore in the third quarter of the current fiscal, from Rs 9,480.1 crore in the year-ago period, according to a release.

The airline has been contending with surging fuel costs and currency volatility that hit profit for the past three quarters.

However, a sharp recovery in demand for air travel to near pre-COVID levels in the domestic and international markets more than offset the fuel expenses.

IndiGo projects capacity in available seat per kilometre this quarter to expand to 45 percent from a year earlier.

Yields, a metric for profitability, rose 21.9 percent to Rs 5.38 per kilometre from a year earlier, while the carrier's load factor, or the passenger carrying capacity being utilized, improved 5.4 percentage points to 85.1 percent.

"Third quarter performance was strong both operationally and financially in the backdrop of robust demand for air travel," Chief Executive Officer Pieter Elbers said in a statement.

Meanwhile, shares of IndiGo declined 1.21 per cent to close at Rs 2,100 apiece on the BSE.