IndiGo Reports Highest Quarterly Profit Since Operations Began
India's largest airline, IndiGo (6E), has announced its biggest quarterly profits since it took to the skies in 2006.
India's largest airline, IndiGo (6E), has announced its biggest quarterly profits since it took to the skies in 2006.
DALLAS - Low-cost carrier IndiGo (6E) reported a history-making profit for Q4 2022, standing at Rs 14.2 bn (US$172.6m), the highest quarterly profit since the airline took to the skies.
When compared to the same quarter in 2023 (Rs 1.2bn), 6E's net profit surged impressively. Before accounting for the foreign exchange loss, profits stood at Rs 20.09bn.
The Delhi-based carrier became the second airline in India to report profits recently. Vistara (UK), a joint venture between Singapore Airlines (SQ) and Tata Sons, also reported positive earnings for the fourth quarter of 2022. However, the carrier's executives refused to release the numbers.
The total income for the quarter ending December 31, 2022, stood at Rs 154.1bn (US$1.87bn) which represents a 62.6% increase in the same period of the previous year. Passenger ticket revenues were recorded at Rs 131.62bn (US$1.6bn) which is a 63% increase from Q4 2021.
Ancillary revenue also experienced a surge when compared to Q4 2021 with a 24.6% increase to Rs 14.22bn (US$172.9m) for Q4 2022.
Total expenses for the quarter Rs 139.86bn (US$1.7bn) representing an increase of 49.6% from Q4 2021. Fuel costs still remains a industry issue and 6E experienced a 77% increase of fuel cost at Rs 57.85bn (stood at Rs 32.69 bn for Q4 2021).
The profits have been helped by seasonal demand is returned to pre pandemic levels, and therefore airlines are turning profits and braking records.
Featured Image: Indigo Airbus A320-271N (VT-ITJ). Photo: Alberto Cucini/Airways.
