Pratt & Whitney boosts IndiGo net profit by record 294%

InterGlobe Aviation, which runs the country’s largest airline, IndiGo, on Tuesday reported a record 294 per cent rise in net profit on account of compensation received from manufacturers Pratt & Whitney and Airbus. 

While the company refused to quantify the amount received on credit, figures were also boosted by a significant Rs 214 crore in terms of other income.

The compensation was received for problems plaguing the carrier’s operation since July that were fixed earlier this month after Pratt & Whitney managed to replace the engines that power the Airbus’s A320neo jets. The world’s biggest buyer of the aircraft grounded as many as nine of its brand new planes on some days.

The airline’s net profit for the second quarter of 2017-18 was Rs 551.55 crore, up from Rs 139.84 crore in the same period a year ago. Total income increased by 27 per cent to Rs 5,505.56 crore from Rs 4,327.70 crore as yields increased by 8.9 per cent.

“Profitability was favourably impacted due to better revenue management compared to last year as well as the credits,” the airline said in a media statement. 

IndiGo said it expected capacity to increase 14 per cent in the quarter ending December, and 19 per cent in the year ending March 31, 2018.

IndiGo and privately owned GoAir are among the biggest customers for the A320neo aircraft, owning 30 between them with around 500 on order.

IndiGo has about 38 per cent of the domestic aviation market with 141 planes and 913 daily flights.

The airline’s shares rose 1.59 per cent on the Bombay Stock Exchange on Tuesday to close at Rs 1,244.30 on a day the Sensex was down 0.16 per cent at 33,213.13 points.