InterGlobe Aviation owns IndiGo, India's largest airline.
New Delhi: InterGlobe Aviation, owner of airline IndiGo, posted a 7 per cent fall in net profit for the fiscal first quarter due to "competitive fare pressures", the company said in a statement to the stock exchange on Monday.
Net profit for the April-June quarter fell to Rs 592 crore ($88.69 million) compared with Rs 639 crore last year. Total income from operations rose 8.7 per cent to Rs 4,579 crore.
IndiGo is India's largest airline, flying about one in three passengers in the country's booming air travel market, and it increased its fleet size to 109 during the quarter.
The airline said it is slowing down deliveries of Airbus' A320neo narrow-body planes to allow engine supplier Pratt & Whitney to catch up on the production of upgraded engines.
"The A320neo operations continue to be a challenge," InterGlobe said in its statement.
Pratt & Whitney, a unit of United Technologies Corp, has encountered problems with slow engine start-up times and erroneous engine software messages in the new engine, already causing a delay in the delivery of planes to Indigo.
IndiGo has ordered a total of 430 A320neo aircraft, making it one of the European plane maker Airbus' largest customers.
The company also reduced its debt by Rs 459 crore to Rs 2,786 crore by retiring debt-related to three aircraft taken on a finance lease.
($1 = Rs 66.7500)
Net profit for the April-June quarter fell to Rs 592 crore ($88.69 million) compared with Rs 639 crore last year. Total income from operations rose 8.7 per cent to Rs 4,579 crore.
IndiGo is India's largest airline, flying about one in three passengers in the country's booming air travel market, and it increased its fleet size to 109 during the quarter.
The airline said it is slowing down deliveries of Airbus' A320neo narrow-body planes to allow engine supplier Pratt & Whitney to catch up on the production of upgraded engines.
"The A320neo operations continue to be a challenge," InterGlobe said in its statement.
Pratt & Whitney, a unit of United Technologies Corp, has encountered problems with slow engine start-up times and erroneous engine software messages in the new engine, already causing a delay in the delivery of planes to Indigo.
IndiGo has ordered a total of 430 A320neo aircraft, making it one of the European plane maker Airbus' largest customers.
The company also reduced its debt by Rs 459 crore to Rs 2,786 crore by retiring debt-related to three aircraft taken on a finance lease.
($1 = Rs 66.7500)
© Thomson Reuters 2016
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