Indigo has become the first airline company in the country to make profit amid the Corona epidemic. Interglobe Aviation, which provides cheap air services under the Indigo brand name, announced its December quarter results last week. The company has earned a profit of Rs 129 crore during this period. With this, it has joined the list of selected airlines companies of the world making profits after the start of the Corona epidemic. Indigo is India’s largest airline in terms of market share and number of aircraft.
Company turned profit after seven months
The company has turned profitable after incurring 7 consecutive quarterly losses. IndiGo posted a profit of Rs 129.8 crore in the December quarter. IndiGo had a loss of Rs 621.80 crore in the December quarter of the year 2020. The company’s revenue grew by 89 per cent to Rs 9294.77 crore in the quarter ended December, 2021. It was Rs 4,909.98 crore in the same period a year ago. Indiga’s loss was estimated at Rs 327 crore in a Moneycontrol poll. The company’s revenue during this period was expected to be Rs 8503 crore.
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Raunak is returning to the airlines industry
IndiGo’s return to profit is considered a good sign for the entire airline industry. IndiGo has also appointed its co-promoter Rahul Bhatia as Managing Director of the company. This post was vacant now. Experts say that there have been many reasons for IndiGo’s better performance. The government has changed its policy for the airlines industry. With this, the airline company has been able to take advantage of the increasing demand for airlines. Tourism in the country is also slowly getting back on track. People are traveling for festivals and holidays.
Benefit of change in government policy
In October last, the government had decided to withdraw the ban on capacity utilization. This gave the airline company an opportunity to increase flights according to demand. Due to this, more traffic was seen at some airports than before Corona. On the other hand, due to the pace of vaccination, many states have relaxed the restrictions. People who have had both the vaccines no longer need to give negative test results at their destination. This has reduced the travel cost.
The government has also increased the limit on fare hike. This has been reduced to 15 days on a rolling basis. With this, companies have been given the facility to change the fare from the 16th day. The demand for air services was also very good in November and December last year. Indigo took full advantage of this. IndiGo utilized 45.2 per cent additional capacity in the December quarter. This helped it reduce its fixed cost. The company has started services to UAE, Qatar, Saudi Arabia and Kuwait under air bubble. The company’s stock rose sharply on Monday. In the afternoon, the share price was up 9.8 percent at Rs 2170.
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