IndiGo reports falling profits

Eleanor Steed
By Eleanor Steed July 31, 2018 13:46

IndiGo reports falling profits

IndiGo has reported a 97% fall in profits to $4million in the three months to June, which is its worst quarterly result since listing in 2015. The airline has been hit by rising fuel prices, which has been exacerbated by the jet fuel tax in India, as well as a weakening rupee that has hit revenue. The airline has also been forced to lease more aircraft to cope with the capacity issues created by the grounded of its A320neos powered by Pratt & Whitney engines that has been hit by entry into service problems.

“We remain cautiously optimistic and hope that these issues are resolved at the earliest,” said Rahul Bhatia, managing director of InterGlobe Enterprises, on an earnings conference call, adding that he expects the situation to improve “in the current quarter” as new turbines arrive for the grounded aircraft.

Eleanor Steed
By Eleanor Steed July 31, 2018 13:46