New Delhi: InterGlobe Aviation, owner of India's largest airline IndiGo,
suffered its biggest fall in quarterly net profit, hit by high fuel
costs and lower yields, as competition and the government's
demonetisation move put fares under pressure.
Net profit for the October-December quarter fell 25 percent to 4.87 billion rupees ($71.8 million) compared with 6.5 billion rupees last year. Total income from operations rose 16 percent to 49.86 billion rupees.
Yields, a measure of fares and distance flown, fell 16 percent during the quarter, said Rohit Philip, the airline's chief financial officer, adding that it expects yields to have fallen by 10 percent in January.
India's air travel market has expanded rapidly in the last decade as it opened up to competition. Ticket prices were cut and the number of people wealthy enough to travel ballooned but airlines now face growing competition and rising oil prices.
The government aims to increase the number of passengers travelling on domestic flights to 300 million by 2022 from 80 million in 2015, and has introduced a scheme with subsidised fares to get people from smaller cities to start flying.
To Read the News in Full 31/01/17 Aditi Shah/Reuters
Net profit for the October-December quarter fell 25 percent to 4.87 billion rupees ($71.8 million) compared with 6.5 billion rupees last year. Total income from operations rose 16 percent to 49.86 billion rupees.
Yields, a measure of fares and distance flown, fell 16 percent during the quarter, said Rohit Philip, the airline's chief financial officer, adding that it expects yields to have fallen by 10 percent in January.
India's air travel market has expanded rapidly in the last decade as it opened up to competition. Ticket prices were cut and the number of people wealthy enough to travel ballooned but airlines now face growing competition and rising oil prices.
The government aims to increase the number of passengers travelling on domestic flights to 300 million by 2022 from 80 million in 2015, and has introduced a scheme with subsidised fares to get people from smaller cities to start flying.
To Read the News in Full 31/01/17 Aditi Shah/Reuters
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