Aided by low oil prices, IndiGo, India's largest airline by domestic carriage, has posted its highest ever net profit of Rs 1,304 crore in 2014-15. Founded in 2005, this is the seventh profitable year for IndiGo in a row.
Net profit has gone up by 176% or near three-fold compared to Rs 473 crore reported in 2013-14.
IndiGo, whose IPO is going to hit the market later this year, filed its financial result with the Directorate General of Civil Aviation on Wednesday . According to that submission, IndiGo added 17 aircraft to its fleet in the last fiscal and currently operates a fleet of 97 Airbus A320s (648 daily flights). Thanks to a combination of lower cost, higher capacity, growth in passenger numbers and higher yields, IndiGo's revenue grew from Rs 1,447 crore in FY 2014 to Rs 14,320 crore in FY 2015.
During the last fiscal, IndiGo added 1,400 new employees, taking the total count to 1,500 at the end of this March. New independent directors -former Bank of Baroda chairman M D Mallya and World Bank former executive Anupam Khanna -joined the airline's board.IndiGo has 430 A320s on order and has already taken delivery of 100 planes.
Centre for Asia Pacific Aviation India head Kapil Kaul said: “Indigo continues to be an excellent outperformer and an industry leader in domestic market on all benchmarks -financial operational and strategic.Their order book is robust and with A320A321 Neos induction starting from December 2015, Indigo will lead the domestic market more aggressively and perhaps, very strategically .“
Aviation turbine fuel or jet fuel accounts for almost half of an airline's operating cost. With jet fuel prices remaining low for many months, the two profitable Indian carriers -IndiGo and the much smaller GoAir -were expected to net record profits in FY 2015. Other airlines, Air India, Jet and SpiceJet were expected to cut their losses.
