IndiGo Q2 results: Airline back in profit, revenue up 19.5%
What's the story
In a remarkable turnaround, InterGlobe Aviation, which operates India's leading airline IndiGo, posted a profit of Rs. 188.9 crore for the quarter ending September 2023.
This is a stark contrast to the net loss of Rs. 1,583.33 crore during the same period last year.
The airline's operational revenue increased by 19.5%, reaching Rs. 14,943 crore, up from Rs. 12,497 crore in the previous year.
This boost in revenue is credited to a significant uptick in domestic travel during the quarter.
Details
Domestic travel demand fuels revenue growth
The growth in IndiGo's revenue can be traced back to the consistent rise in demand for domestic travel in India over the past three quarters.
The company's impressive performance can be linked to its emphasis on cost management and operational efficiency.
The domestic travel demand continues to be strong and shows no signs of waning.
Insights
Debt increases, cash reserves improve
IndiGo reported a revenue per available seat kilometer (RASK) of Rs. 4.25, slightly lower than the cost per available seat kilometer (CASK) at Rs. 4.19, primarily due to elevated fuel costs.
The company also noted a decline in the yield per passenger, which dropped from Rs. 5.07 to Rs. 4.44 in Q2.
The company's total debt saw a 20.6% YoY increase, reaching Rs. 49,391.7 crore, while total cash reserves grew by 56% to Rs. 30,665.8 crore.
Insights
IndiGo's fleet grows to 334 aircraft
By the end of the quarter, the airline's fleet had expanded to 334 aircraft, showing growth from the previous quarter's number of 316.
During the quarter, IndiGo reached its operational peak with a total of 1,958 daily flights, which included both scheduled and non-scheduled flights.
On Friday, IndiGo's shares settled at Rs. 2,509.20, up 0.73%, on NSE. The results came after the market hours.