IndiGo ends streak of quarterly losses; posts Rs 130 crore net profit in Q3 [details inside]

Interglobe Aviation Ltd, which runs the budget airlines and market leader IndiGo, has turned the tables around and is back in the green. The airline's Q3 results have a positive outlook, a refreshing change after seven consecutive quarters. IndiGo has reported net profit of Rs 130 crore for the December quarter, which is a result of higher revenue and yields.

"I am pleased that we were able to report a profit for the third quarter. It demonstrates that our business model is fundamentally strong. Our employees have remained a pillar of strength throughout this health crisis and have steadfastly provided superior service to our customers," IndiGo CEO Ronojoy Dutta was quoted as saying by CNBC TV18.

IndiGo's Q3 earnings

IndiGo, in its quarterly earnings, reported a spike in revenue to Rs 9,294.7 crore against Rs 5,142,5 crore in the year-ago period. In the quarter, the total income jumped 84.3 percent to Rs 9,480.1 crore and the total cash balance stood at Rs 17,318.9 crore, a 5.7 percent decline over a year ago.

"We are in a volatile environment, experiencing a bit of unpredictable demand environment. Global experience indicates recovery in Q1 of FY23. Q3 Profit shows fundamentals of aviation in India remains strong," Dutta said.

Dutta noted that fuel continues to be a significant headwind. He also said the Q3 performance would have been better if not for Omicron. Despite that, IndiGo reached 95 percent of pre-COVID capacity in December.

Comparing against last year's reports, IndiGo reported a net loss of Rs 1,435 crore in September quarter. In the last year period, the airlines had suffered a massive loss of Rs 6,201 crore.

IndiGo's results came after the market hours. The shares of IndiGo traded at Rs 1,969.95, up 1.57 percent on BSE.

"Higher employee engagement results in higher level of customer service. We are positioning ourselves as a preferred airline because of superior service. Look forward to FY23 with optimism, hopeful that better times are ahead of us," Dutta added.

IndiGo's fleet consists of 283 aircraft, including 56 A320 CEOs, 140 A320 NEOs, 52 A321 NEOs and 35 ATRs. The airlines added four aircraft in the quarter and operated a peak of 1,574 daily flights including non-scheduled.