India’s largest low-cost carrier (LCC), IndiGo, posted an 18 per cent jump in profit in the year ended March, performing better than many of its rivals, all of which except one made losses during the period, according to a Mint report by Tarun Shukla.
IndiGo, owned by InterGlobe Aviation Pvt. Ltd, said in its annual filing to the Directorate General of Civil Aviation (DGCA) that profit rose to Rs 650 crore from Rs 551 crore, marking a third straight year of profit for the carrier that began operations in 2006.
“IndiGo is moving in the right direction. While some of their profit results from sale and leaseback of aircraft, rather than all from operations, they are performing quite well. With a record order for Airbus A320neos, they will need to continue to be profitable to finance their growing fleet,” said Ernest Arvai, President of US-based aviation consultant Arvai Group Inc.
Gurgaon-based IndiGo has 231 Airbus aircraft on order for delivery over the next 15 years. In 2010-11, it added 12 A320s, bringing its fleet to 38 in March. The carrier only uses A320s.