The woes of Jet Airways have helped its rival company IndiGo Airlines gain five times the profit. The company announced the results of the fourth quarter of last financial year on Monday. Indigo’s parent company InterGlobe Aviation said that the net profit of the company was Rs 589.6 crore in the January-March 2019 quarter. Earlier, the company had a profit of Rs 117.6 crore in the same quarter of the financial year.
Gains of Jet Crisis
At the beginning of this year, Jet’s crisis began to unfold and on April 17, the company had to stop its services. However, the number of jet planes was lower than the beginning of this year, which made the rental costlier and also benefited from Indigo and other aviation companies.
Total income of the airline increased 35.5 percent to Rs 8,259.8 crore in the quarter ended March 2019, compared to Rs 6,097.7 crore in the corresponding period of the previous fiscal.
Net profit decreased over the year
The company offering cheap aviation services said that net profit in the entire financial year 2018-19 was Rs 156.1 crore, which is 93 per cent lower than the previous target of Rs 2,242.4 crore.
Tough year for aviation companies
Indigo’s Chief Executive Officer Ranojoy Dutta said, “The financial year 2018-19 is a tough year for the airline industry. “This is due to high fuel prices, rupee depreciation and tough competition environment. He said that he is excited for the future and looking at many opportunities of profitable growth.
12 percent increase airfare
Airfare is considered to be a great standard for earning. During this quarter, Indigo increased its fares by about 12 percent. Talking about per km per seat revenues, it reached a level of 3.63 per cent with growth of 5.9 per cent. Interglobe said that the company is estimated to have a 30 per cent increase in per km revenue on the available seats during the financial year 2020.