InterGlobe Aviation, the parent company of India's leading airline IndiGo, has reported a significant financial turnaround in the second quarter of the fiscal year 2023-24.
The airline recorded a profit of Rs 188.9 crore, a stark contrast to the Rs 1,583.33 crore loss in the same quarter of the previous year. This profit comes on the heels of a robust demand for domestic travel, which has been on a consistent rise over the past three quarters.
IndiGo's revenue from operations saw a 19.5% jump to Rs 14,943 crore, up from Rs 12,497 crore in the corresponding period last year. The surge is attributed to the increased demand for domestic travel within India.
The airline's passenger ticket revenue rose by 17.6% to Rs 13,069 crore, complemented by a 20.5% increase in ancillary revenues. CEO Pieter Elbers highlighted the network's growth, with 10 new destinations recently added, bringing the total to 115.
The airline's operational efficiency improved, with EBITDAR reaching Rs 2,436.4 crore, compared to Rs 229.2 crore in the same quarter of the previous year.
The available seat kilometers (ASK) rose by 27.7% to 35.3 billion, and revenue passenger kilometers (RPK) surged by 34.3% to 29.4 billion. IndiGo also maintained its market leadership, carrying 234.09 lakh passengers and commanding a market share of 60.7%.
IndiGo's total debt rose by 20.6% to Rs 49,391.7 crore year-on-year, while its cash reserves increased by 56% to Rs 30,665.8 crore that indicates a strong capacity for debt management.
High fuel costs affected the airline's operations, with a CASK of Rs 4.19 and a lower passenger yield of Rs 4.44. Nonetheless, IndiGo grew its fleet to 334 and hit a daily peak of 1,958 flights.