IndiGo logs ₹189 cr profit in Sep qtr on air travel pick-up

livemint.com:

New Delhi: InterGlobe Aviation Ltd, which runs India’s largest IndiGo airline, clocked a net profit of ₹188.9 crore in the September quarter as air travel picked up, against a loss of ₹1,583 crore a year earlier. Total income during the period rose 20.6% from a year earlier to ₹15,503 crore, in what is typically a weak quarter for the travel industry. In fact, since IndiGo went public in November 2015, it has recorded a net profit in the quarter only twice—in 2016 and 2017.

Though its performance beat estimates, IndiGo said it expects a severe capacity shortage in 2024 due to issues with Pratt & Whitney engines, which power its A320 neo and A321 neo aircraft. In July, P&W said it needs to inspect 1,200 engines worldwide to assess an issue around the metal used in manufacturing the parts of a PW-1100G engine. IndiGo operates 150 of these aircraft, though it is not clear how many of them will be affected.

“Our current estimate is these accelerated inspections, and incremental shop visits will further adversely impact our operating fleet from Q4 onwards, which is 1 January 2024, and will lead to a higher number of groundings. The number of aircraft (to be impacted) is not known, but the duration could range between 250-300 days for inspection to be carried out for all the engines that are going to be recalled," chief financial officer Gaurav Negi told analysts in a post-earnings conference call. The airline, which has already grounded 40 aircraft due to earlier issues in P&W engines, is working to cover the capacity shortage.