IndiGo’s Q1 net profit plunges 97%

Mumbai: Budget passenger carrier IndiGo on Monday reported a decline of 96.6 per cent in its net profit for the first quarter of 2018-19 due to high fuel prices and currency fluctuations.

According to the airline, net profit for the quarter under review declined to Rs 27.8 crore from Rs 811.1 crore reported for the corresponding period of the previous fiscal.

However, the budget passenger carrier’s revenue from operations grew by 13.2 per cent to Rs 6,512 crore from Rs 5,752.9 crore earned during Q1 of 2017-18.

The company’s total expenses for the quarter ended June 30, 2018 increased by 40.5 per cent to Rs 6,787 crore from Rs 4,831.2 crore. “Our CASK (Total Cost net of finance income per Available Seat Kilometer) excluding fuel was majorly impacted by the adverse movement in foreign exchange in the quarter,” the company said in a statement.

“While we faced headwinds during the quarter, we remain focused on executing our long term plan,” IndiGo’s co-founder and interim CEO Rahul Bhatia was quoted in a statement as saying.

“We added capacity into new routes and destinations domestically and also continued to connect international destinations to various cities in India.”