INSUBCONTINENT EXCLUSIVE:
Authors: JordannterGlobe Aviation had reported its earnings after market hours yesterday.
Shares of InterGlobe Aviation slumped as much as 18 per cent today,
after the owner of India's top carrier IndiGo reported a 73 per cent slump in fourth-quarter profit
Profit dropped to Rs 118 crore, from Rs 440 crore a year earlier, dragged down by higher expenses and fuel costs
InterGlobe Aviation had reported its earnings after market hours yesterday
Total expenses jumped 30.2 per cent to Rs 5,891 crore, including a 33.5 per cent increase in fuel costs in the January-March quarter
Other aviation stocks also fell sharply today
Jet Airways fell 5 per cent while SpiceJet shares were down nearly 7 per cent.IndiGo also had to cancel hundreds of flights in March when
several in-flight engine failures prompted aviation regulator to ground eight of the airline's Airbus A320neo aircraft fitted with certain
The airline managed to transfer passengers to other flights, however, minimising revenue losses.Revenue per available seat kilometre - a
measure of its operating earnings - fell over three per cent to Rs 3.40 in January-March
Passenger yields, which gauge the average fare paid per mile per customer, dropped over five per cent.However, IndiGo expects a 25 percent
rise in available seat kilometres, a measure of the airline's passenger carrying capacity, in the fiscal year that began on April 1.The
company announced last week that its president, Aditya Ghosh, would step down after 10 years with the company and it would consider naming
Gregory Taylor, an airline sector veteran, as his successor in the coming months.Market regulator Sebi is examining the cause for drop in
InterGlobe Aviation Ltd.'s shares before the operator of the nation's largest airline announced the resignation of its president, Bloomberg
reported earlier, citing people familiar with knowledge of the matter
On April 27, shares of IndiGo shares had fallen over 6 per cent.At 9:44 am, shares of IndiGo were down 16 per cent to Rs 1,128 as compared
to a 0.3 per cent fall in Sensex
