NEW DELHI: Impacted by the ongoing spat between its founder partners, the IndiGo Board decided to continue meeting for one more day as “a range of issues” were taken up but could not be resolved. Meanwhile, the company’s chief executive officer Ronojoy Dutta said there is absolutely no disagreement between the promoters over the airline’s growth strategy.
The airline, however, also reported its highest ever quarterly profit in the recently concluded June quarter. InterGlobe Aviation that operates IndiGo, the country’s largest airline by market share, reported a 42-fold surge in net profit at Rs 1,203 crore in the first quarter of FY2019-20 as against Rs 27 crore it posted in same quarter a year ago.
During the quarter, the airline benefitted as the jet fuel price turned softer and airfares witnessed a significant jump post the grounding of Jet Airways. The airline said it does not see any benefits emerging out of Jet’s situation from the September quarter onwards.Total income jumped 43.5 per cent to Rs 9,420 crore.“Strong passenger revenues, along with a sharp improvement in cargo performance, were key drivers to this improved profitability,” Dutta said.
During a conference call, he informed that the board discussed about appointing a woman director and that would need changes in the company’s Articles of Association. The company also informed that the regulator is probing the matter on the allegations of misgovernance raised by co-promoter Rakesh Gangwal. The company is responding to the SEBI, Dutta said.