India's IndiGo says profit helped by Pratt, Airbus payouts

Tuesday, October 31 2017

IndiGo owner InterGlobe Aviation second-quarter profit quadruples IndiGo owner InterGlobe Aviation second-quarter profit quadruples Source : Last 16:41 hrs
(Reuters) - InterGlobe Aviation, the owner of India's biggest airline IndiGo, reported an almost four-fold rise in quarterly profit, helped by higher passenger revenue and credits received from Pratt & Whitney and Airbus on aircraft groundings and delivery delays.
Net profit came in at 5.52 billion rupees ($85.26 million during the quarter ended Sept. 30 while revenue from operations grew about 27 percent to 52.91 billion rupees.
InterGlobe reported its best ever September-quarter profit - usually a weak period for airlines in the country due to fewer holidays falling in that time.
The company said its revenue per available seat kilometre - a measure of its operating earnings - rose about 13 percent to 3.52 rupees. Passenger yields, which measure the average fare paid per mile per customer, climbed 9 percent.
In July, InterGlobe Aviation warned that delays in deliveries of Airbus' A320neo aircraft, due to issues with the new Geared Turbofan (GTF) engines, were affecting margins, adding it was having to lease planes to make up the shortfall.
Earlier in October a source told Reuters that Pratt & Whitney, which makes the GTF engines, was close to coming up with a fix for those problems.
IndiGo and privately-owned GoAir are among the biggest customers for the A320neo planes, owning about 30 between them with around 500 on order.
($1 = 64.7400 Indian rupees)
(Reporting by Arnab Paul,; Additional reporting by Gaurav Dogra in Bengaluru; Editing by Sunil Nair and Louise Heavens) SEARCH