IndiGo Airline's parent Interglobe Aviation Ltd said its net profit for third quarter ended December 31, 2019 stood at Rs 496 crore as against Rs 185.2 crore.
IndiGo Airline's parent Interglobe Aviation Ltd said its net profit for third quarter ended December 31, 2019 stood at Rs 496 crore as against Rs 185.2 crore, helped by increased efficiencies and a boost from lower fuel costs. The street, however, expected profit to the tune of Rs 175 crore for the quarter.
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The company's revenue from operations rose 25.5 percent to Rs 9,931.7 crore for the quarter.
Earnings before interest, tax, depreciation and amortisation and rental cost, (EDITDAR) rose 17.2 percent to Rs 1,960.7 crore for the quarter.
The load factors improved to 87.6 percent, as compared to 85.3 percent an year earlier. Fuel costs for the quarter dropped 2 percent to Rs 3,342 crore.
However, expenses at the airline rose 21.5 percent amid higher maintenance costs after it was forced to replace the Pratt & Whitney engines on its fleet of Airbus A320neo planes which have been linked to in-flight engine shutdowns.
News report suggests that of IndiGo's 250 aircraft, 96 are A320neo—which has been plagued with engine issues—and if concerns do not get resolved then the company may be banned from flying their A320neo which will be an overhang on the stock.
First Published: IST