IndiGo's net profit falls 77% to ₹549.8 crore

InterGlobe Aviation Q3 Results: The past month was no less than a nightmare for air passengers. If you too have recently traveled by IndiGo or waited for hours at the airport for your flight, then you will be aware of the chaos. Cancellation of flights and long queues were not only a headache for the passengers, but now its direct impact has also been seen on the coffers of the country's largest airline IndiGo. The company has declared its December quarter results and the figures show that IndiGo has suffered a huge financial blow.

such a big dent in profits

The figures released by IndiGo's parent company InterGlobe Aviation are shocking. Last year, in the same quarter, the company had earned a huge profit of Rs 2,449 crore, which has fallen to just Rs 550 crore this time. That means there has been a direct decline of 78 percent in profits.

According to the company, there are three big reasons behind this. First, due to the implementation of the new labor law, the company incurred a burden of about Rs 969 crore. Second, the operational crisis and flight cancellations in early December led to a loss of Rs 577 crore. And thirdly, the fluctuations of the rupee against the dollar also caused losses to the company.

There has been an increase in revenue

The profit graph has gone down but the airline's revenue has increased. The company's revenue has increased by 6 percent compared to last year. If the company had not had this additional burden of labor laws and operational problems, their actual profit would have crossed Rs 3,000 crore.

Interestingly, despite all the complaints and cancellations, the number of passengers traveling by IndiGo has increased by about 2.8 percent in this quarter. Overall, 3.19 crore people flew with IndiGo during this period. However, a slight decline has been recorded in the yield from each seat.

CEO said there were difficulties, but the foundation is strong

IndiGo CEO Peter Albers has also given his views on the uproar that broke out in the beginning of December. He admitted that due to operational problems, a large number of flights had to be cancelled, which dealt a blow to the company.

Albers says that despite these challenges, the company has achieved a revenue of Rs 245 billion, which shows that IndiGo still has a strong hold in the market. He assured that the company is expanding its network and is committed to providing better experience and reliability to passengers in future.