IndiGo owner Interglobe's profit rises fivefold, sees strong year ahead
Adds details, share movement
BENGALURU, May 27 (Reuters) - Interglobe Aviation INGL.NS, the owner of India's largest airline by market share, IndiGo, forecast a strong year ahead on Monday, after reporting a fivefold jump in profit for the fourth quarter.
IndiGo and other carriers like SpiceJet SPJT.BO have gained passengers in recent months given the woes at Jet Airways Ltd JET.NS, which started grounding its fleet early this year. Jet was forced to stop all operations eventually.
That allowed IndiGo to raise prices on some routes.
IndiGo's yield, a measure of airfare, rose 12% during the quarter. Revenue per available seat kilometre, a measure of the carrier's operating earnings, rose 5.9% to 3.63 rupees in January-March.
Profit rose to 5.90 billion rupees ($84.87 million) for the quarter ended March 31, compared with 1.18 billion rupees a year earlier.
Interglobe said it expected a 30% rise in available seat kilometres in the fiscal 2020, a measure of the airline's passenger carrying capacity.
Shares of the company closed at record highs, up 2.5% in a broader Mumbai market .NSEI which ended 0.7% higher.
($1 = 69.5150 Indian rupees)
Market Share Of Domestic Airlineshttps://tmsnrt.rs/2I28wuv
(Reporting by Krishna V Kurup in Bengaluru; Editing by Himani Sarkar and Subhranshu Sahu)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.