NEW DELHI: InterGlobe Aviation Ltd, which operates the country’s largest airline by market share IndiGo, today reported a strong growth in net profit to ?1,203 crore on higher sales and improved margins, up from ?27 crore profit it had in the same quarter a year ago.
A company statement said, quoting chief executive officer Ronojoy Dutta, that IndiGo’s highest ever quarterly profit after tax in the June quarter was on account of strong passenger revenues along with a sharp improvement in cargo performance.
Sales jumped 42% in the June quarter to ?9,420 crore from the corresponding period a year ago. IndiGo’s sales and market share have been steadily increasing in the recent past even as rival Jet Airways stumbled upon a liquidity crunch leading to its suspension of operations in April.
IndiGo’s share in the domestic market rose from 39.7% in January 2018 to 49% in May 2019, giving it the unique position of controlling half of India’s air travel market, carrying about 6 million passengers in the month. After posting a ?652 crore net loss in the September 2018 quarter on account of a weak rupee and high jet fuel price, the carrier climbed back spectacularly in the subsequent two quarters to end the March 2019 quarter with ?590 crore net profit, showing an over 400% jump from the profits reported a year ago.