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IndiGo owner sees more flyers after record profit, Jet collapse helps

Reuters 2019-07-19 10:50:00

BENGALURU (Reuters) - Interglobe Aviation Ltd, which operates India’s top airline IndiGo, on Friday said it expected passenger capacity to grow by nearly a third this fiscal year, as the company reported its highest-ever quarterly profit in the June quarter, benefiting from the collapse of Jet Airways.

Interglobe and its peer SpiceJet Ltd have both seen a surge in passenger growth, after Jet Airways, once the country’s biggest private carrier, declared bankruptcy. IndiGo is now India’s largest airline by market capitalisation.

The company expects available seat kilometres (ASK), a measure of its passenger carrying capacity, to grow 30% in the financial year ending March 2020 and sees a 28% ASK jump in the current quarter.

Interglobe’s founders have recently been involved in an escalating dispute, dragging down the parent’s shares.

However, internal strifes did not impact the New Delhi-based company’s net profit for the three months ended June 30, which rose to over 12 billion rupees ($174.29 million) from 277.9 million rupees a year ago. Revenue rose 45% to 94.2 billion rupees.

IndiGo’s yield, a measure of the average passenger fare per mile, rose 12.8% during the quarter, reflecting the rising passenger preference for the airline, while its ASK rose 30.3% during the period.

Interglobe shares closed 0.28% higher on Friday, amid a broader market that ended 1.53% down.

($1 = 68.8500 Indian rupees)