Clearer skies

31 July 2018 By Clara Ferreira Marques

Shares in InterGlobe Aviation, which owns IndiGo, fell sharply after first-quarter earnings plunged 97 pct. A fare war at home is to blame, as are rising fuel prices. But rivals are suffering too, and high costs will encourage the carrier to pause a planned long-haul splurge.

This content is for Subscribers only

Context News

InterGlobe Aviation said on July 30 that its profit after tax for the first quarter to the end of June fell 97 percent to 278 million rupees ($4 million), its lowest in three years.

Fuel costs rose 54 percent. Other costs, including maintenance, rose by almost a third. Revenue per available seat kilometer (RASK) fell just over 3 percent to 3.7 rupees, while passenger yields, which gauge the average fare paid per kilometer, fell 5.4 percent.

Shares in the group were down over 8 percent at just under 922 rupees at around 0700 GMT on July 31.

Email a friend

Please complete the form below.

Required fields *