InterGlobe Aviation's net profit quadruples in Q2
Net profit came in at 5.52 billion rupees ($85.26 million during the quarter ended Sept. 30 while revenue from operations grew about 27% to 52.91 billion rupees.
InterGlobe Aviation, the owner of India`s biggest airline IndiGo, reported an almost four-fold rise in quarterly profit, helped by higher passenger revenue and credits received from Pratt & Whitney and Airbus on aircraft groundings and delivery delays.
Net profit came in at 5.52 billion rupees ($85.26 million) during the quarter ended September 30,2017 while revenue from operations grew about 27% to 52.91 billion rupees.
InterGlobe reported its best ever September-quarter profit - usually a weak period for airlines in the country due to fewer holidays falling in that time.
The company said its revenue per available seat kilometre - a measure of its operating earnings - rose about 13% to 3.52 rupees. Passenger yields, which measure the average fare paid per mile per customer, climbed 9%.
In July, InterGlobe Aviation warned that delays in deliveries of Airbus` A320neo aircraft, due to issues with the new Geared Turbofan (GTF) engines, were affecting margins, adding it was having to lease planes to make up the shortfall.
Earlier in October a source told Reuters that Pratt & Whitney, which makes the GTF engines, was close to coming up with a fix for those problems.
IndiGo and privately-owned GoAir are among the biggest customers for the A320neo planes, owning about 30 between them with around 500 on order.