IndiGo parent firm reports record Q1 profit

The owner of IndiGo, InterGlobe Aviation Ltd, reported a 37 percent jump in quarterly profit on Monday to a record high powered by growth in passenger revenue and margins at India’s largest airline.

Low-cost carrier IndiGo has expanded rapidly since its launch in 2006 and now flies four of every 10 passengers on India’s domestic routes.

Profit rose to 8.11 billion rupees from 5.92 billion a year earlier, InterGlobe said. bit.ly/2uMvkZB

Passenger revenue rose 27.9 percent to 50.78 billion rupees ($ 791.40 million) and accounted for 85 percent of total revenue for the three months to June 30.

IndiGo’s revenue per available seat km – a measure of its operating earnings – rose 5.5 percent to 3.82 rupees.

Its yield, a measure of fares and distance flown, rose 2 percent.

Second quarter capacity in available seat km is expected to rise 15 percent and to grow 20 percent in fiscal year 2018, InterGlobe said.

It forecasted capacity to grow at a compound annual growth rate of about 20 percent for 2018 to 2020.