Q4 Results: IndiGo Beats Estimates As Profit Jumps Fivefold

InterGlobe Aviation Ltd.’s quarterly profit jumped fivefold as the operator of budget carrier IndiGo earned higher fare per passenger at a time fuel prices were relatively lower.

Analyst Call Highlights:

• International unit revenue increased 13.6 percent, while domestic rose 6 percent.
• Jet Airways issues improved unit revenue by 3-4 percent in Q4.
• April revenue has been stronger than March because of Jet shutdown.
• Expect positive impact of Jet issues to disappear by June.
• Expect 5 percent improvement in unit revenue for FY20.
• Have not placed any order for wide bodied aircraft so far and don’t expect to do it in near future.
• Half of the capacity addition in future will be towards international route.
• Have hired 285 Jet pilots who will come on board in the next 3-6 months