IndiGo operator's profit surges on Jet Air collapse

IndiGo operator's profit surges on Jet Air collapse

Airline IndiGo. Reuters file photo

Interglobe Aviation Ltd, which operates India's top airline IndiGo, on Friday reported its highest-ever quarterly profit after tax in the June quarter, as the collapse of Jet Airways diverted passengers to other low-cost carriers.

The company and its peer SpiceJet Ltd have both seen a surge in passenger growth, after Jet Airways, once the country's biggest private carrier, declared bankruptcy.

Interglobe said its net profit for the three months ended June 30 rose to over 12 billion rupees ($174.29 million) from 277.9 million rupees a year ago. Revenue rose 45% to 94.2 billion rupees.

IndiGo's founders have recently been involved in an escalating dispute, dragging down the parent's shares.

IndiGo's yield, a measure of the average passenger fare per mile, rose 12.8%, reflecting the rising passenger preference for the airline, which is now India's biggest by market share.

Interglobe shares closed 0.28% higher on Friday amid a broader market that ended 1.53% down. ($1 = 68.8500 Indian rupees)