The airline reported an EBITDAR ₹ 1553.76 crore with an EBITDAR margin of 33.9 per cent for the quarter ended June 2016 as compared to an EBITDAR of ₹ 1576.93 crore with an EBITDAR margin of 37.4 per cent for the same period in the previous year.
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InterGlobe Aviation Ltd, which operates India’s top domestic air carrier by market share under the IndiGo brand, posted a fall of 7.4% in net profit for the first quarter of financial year 2016-17.
The company has reduced its debt by Rs 458.9 crore for the quarter.
“We have posted yet another profitable quarter”, InterGlobe president Aditya Ghosh said in a statement, “However, profitability was lower than a year ago primarily because of competitive fare pressures”. The airline said its average fare in the April-June, 2016, quarter was Rs 4,032, as opposed to Rs 4,524 in the same period last quarter.
However, the company’s total revenue from operations increased by 8.7% as compared to FY16 at Rs 4,578.8 crore for the quarter ended on June 2016. Passenger revenue rose by 6.9% to INR 3,972 crore, the ancillary revenue grew 20.8% from previous year to INR 580 crore. “The entire debt for IndiGo is aircraft related and the airline does not have any working capital debt”, the airline informed the stock exchange.
The airline said that the decline in profitability was due to competitive fares.
IndiGo continued to face “challenges” in its Airbus A320 neo operations and the company said it is “looking at slowing down the A320neo deliveries”.
Pratt & Whitney, a unit of United Technologies Corp, has encountered problems with slow engine start-up times and erroneous engine software messages in the new engine, already causing a delay in the delivery of planes to Indigo.
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IndiGo is the Airbus’ biggest customer as the company has ordered 430 A320neo planes.
