NEW DELHI: Interglobe Aviation, the operating concern of India’s largest domestic carrier IndiGo, has reported a whopping 96.6 per cent fall in net profit for the April-June, 2018, quarter primarily due to high fuel prices and adverse forex trends.
While the Gurugram-based budget carrier had posted a net profit of `811.10 crore in the same quarter last year, earnings fell to just around `27.8 crore for the period this year.
However, other financial metrics remained positive for the airline operator. Sales from operations rose 13.2 per cent to `651.20 crore from `575.29 crore a year ago, while ancillary revenues rose 16 per cent to `68.27 crore.
“The profit during the quarter was primarily impacted by rupee depreciation, increase in fuel prices, continuous pressure on yields and increase in maintenance cost,” said Rahul Bhatia, co-founder and interim chief executive officer, IndiGo, in an analysts’ call.
The June quarter saw total expenses for the company soared by 40.5 per cent year-on-year to `678.70 crore, while fuel cost shot up by 54.5 per cent to Rs 271.56 crore, from Rs 175.92 crore a year ago. Yields, or average ticket prices, also dropped 5.4 per cent to Rs 3.62 per km, against Rs 3.83 per km last year. The upward trend in load factors continued, with the figure rising 1.3 per cent to 89.3 per cent in the quarter, against 88 per cent a year ago.
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