IndiGo Hit Badly By Flight Disruptions And New Labour Code , Q3 Profit Plunges By 78%

Picture Credit : @IndiGo6E/X
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India’s largest airline IndiGo has  reported a 78 per cent decline in December quarter net profit at Rs 549.1 crore as flight disruptions and implementation of the new labour code took a toll on its earnings.

The airline reported a net profit of Rs 549.1 crore in the October-December quarter, compared with Rs 2,448.8 crore earnings in the year-ago period, according to a company statement.

The company said it took a hit of Rs 1,546.5 crore in the third quarter.

This included Rs 577.2 crore due to massive flight disruptions witnessed during early December and another Rs 969.3 crore on account of the implementation of new labour laws.

IndiGo was slapped with a fine of Rs 22.2 crore for the flight disruptions, which it has accounted for in exceptional items.

Currency movement related to dollar-based future obligations aggregated to Rs 1,035 crore in the December quarter.

In the third quarter of the current financial year, InterGlobe Aviation, the parent of IndiGo, recorded a total income of Rs 24,540.6 crore, higher than Rs 22,992.8 crore posted in the year-ago period.

IndiGo CEO Pieter Elbers said in the December quarter, the company faced major operational disruptions that resulted in significant flight cancellations and delays from December 3 to 5.