Aviation and Airlines (Commonwealth Union) _ IndiGo, India’s largest airline, has achieved remarkable financial success in the first quarter of the financial year 2023-24. The airline reported its highest-ever quarterly profit of nearly ₹31 billion ($373 million), marking a significant turnaround from the same period last year when it experienced a net loss of ₹10 billion ($128 million). The impressive profits were driven by robust travel demand and the benefit of lower fuel prices, contributing to a strong balance sheet.
CEO Pieter Elbers expressed his satisfaction with the solid start to the year, building on positive momentum from the previous two quarters. IndiGo achieved strong operational performance, attracting the highest number of quarterly passengers, leading to record-breaking revenue and net profit for the quarter ending in June 2023. The airline’s optimistic outlook is further supported by its recent order for 500 aircraft, bolstering its position for future growth.
Key figures reveal an almost 30% year-on-year increase in revenue, reaching ₹166 billion ($2 billion). The airline’s EBITDAR surged to ₹52 billion ($629 million), a substantial rise from ₹7 billion ($86 million) in the same quarter last year. Factors contributing to these gains include increased operational scale, improved efficiencies, lower fuel costs, and favorable foreign currency movements.
Cost reduction initiatives have had a positive impact, with the fuel CASK decreasing by approximately 26.6% due to lower average fuel prices. Additionally, the quarter ended with a slightly stronger rupee, resulting in a forex gain of around ₹1.2 billion.
IndiGo continues its expansion efforts, adding 12 passenger aircraft to its fleet during the last quarter. As of June 30th, the airline’s fleet comprised 316 aircraft, serving 78 domestic and 22 international destinations through 1,873 daily flights, including non-scheduled services. The airline’s dominance in the Indian aviation market is evident, with an impressive 63.2% share of the domestic market by June end. With a growing network and favourable market conditions, IndiGo remains optimistic about the quarters ahead, ensuring an exceptional travel experience for its passengers.
