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IndiGo says will post profit this year, too

Wednesday, 31 October 2012 - 9:04am IST | Place: Mumbai | Agency: DNA
IndiGo Airlines, the biggest domestic carrier by market share, expects to remain profitable this financial year, too.

IndiGo Airlines, the biggest domestic carrier by market share, expects to remain profitable this financial year, too.

The airline is also increasing the frequencies on its exiting international routes and will add to fleet by the end of the current fiscal.

“We expect to be profitable this fiscal, too,” IndiGo president Aditya Ghosh said on the sidelines of CAPA summit.  

“Not just IndiGo, but other Indian carriers are also expected to make money this financial year,” he said.

IndiGo was the only local airline that made profits last fiscal. Despite entering the market only six years ago, the airline has managed to become the largest domestic carrier, overtaking Jet Airways and Air India.

The firm is, however, feeling some pressure on margins on account of high fuel cost.
“There is a pressure on margins due to the high fuel cost. In last 36 months, the fuel cost went up three times, but airfares did not go up in that range. So naturally margins will be under pressure,” he said.

The company is looking at increasing the frequencies at its existing international routes.
“We are not adding any new routes, while we want to increase the frequencies of the existing routes. We are awaiting approvals,” Ghosh said.

Currently, international routes contribute about 12-13% to the airline’s total capacity.
The airline will add one aircraft by December end and three more by the end of this fiscal, taking its fleet to 64.

IndiGo currently has a domestic market share of 27.2% ahead of Air India and Jet, which stands at 19.3% and 18.1%, respectively, according to data by Directorate General of Civil Aviation.

 




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