India’s largest airline in terms of market share, IndiGo, on Wednesday reported a 73 per cent drop in its profit for the quarter ending March 31 2018. Despite this dip in share, the airline still managed to post a profit of Rs.118 crore.
InterGlobe Aviation which is the parent company of IndiGo registered a total income of Rs.6,057 crore in the quarter, up 20 per cent from Rs.5,142 crore in the same quarter last year. While its revenue increased, rising fuel costs and a strong dollar have resulted in a higher increase in its expenditure.
The airline reported a profit of Rs.2,242 crore (after tax) for the fiscal year. Revenues for the year increased by 23.9 per cent to Rs.23,967 crore.
Shares of the company dropped by almost 18 per cent today morning, with the share price being Rs.1,172.25 as of noon. The company, on its part, stated that each share earned Rs.60.03 for the fiscal year, with the earning for Q4 being Rs.3.06.
The official report released by the airline also stated that a dividend of Rs.6 per share has been recommended.
Fuel costs for the year increased by 22.4 per cent to Rs.7,760 crore from Rs.6,341 crore while fuel costs for the quarter jumped by 33.5 per cent to Rs.2,337 crore.
Total costs for the year stood at Rs.20,841 crore, a 21 per cent increase compared to the costs associated with the previous year.
The quarter also saw IndiGo operating over 1,000 flights on a daily basis (in its peak), with the airline flying to over 50 destinations. The budget carrier currently has 159 aircraft in its fleet, with the flight cancellation rate being just 1.74 per cent.