IndiGo posts 5-fold jump in Q4 profit on Jet Airways’ turbulence

Flying high on a spurt in airfare following grounding of rival Jet Airways’ aircraft, Interglobe Aviation, that runs IndiGo, recorded a five-fold year-on-year jump in its net profit to `590 crore for the March quarter.
The airline’s shares, which have skyrocketed as much as 39% since January, closed up 2.5% on the BSE on Monday, outperforming a 0.6% rise in the Sensex.

IndiGo seems to have weathered the damaging impact of the cancellation of over 30 flights a day in February and March 2019 owing to a shortage of pilots and the repair work at Mumbai’s Chhatrapati Shivaji International Airport. In the third quarter of FY19, the airline had posted a profit of Rs 191 crore.

While revenue from operations jumped 36% year-on-year to Rs 7,883 crore in the March quarter, operating margins or the Ebitda (earnings before interest, tax, depreciation, amortisation and rentals) rose 6.7 basis points to 29.4%, aided partly by relatively low fuel prices.