Indigo Continues profit run as rival airlines grapple with losses

Introduction
Indigo is largest airline by passenger in India.

Company had reported the profit of Rs787 Cr.

Total revenue of company is Rs9458 Cr. Indian airline industry have lost a combined $1.95

billion (Rs12226Cr. Approx). Airline has increased its fleet capacity by 39% since last year.

Reasons
Continues expansion

Better yield.
Low fare model. Large part of profit is generated by the sales and

lease back of aircraft.

Competitors Position
Kingfisher Airline ltd. Lost nearly $200 million. SpiceJet Ltd reported a loss of Rs191cr.

Jet Airways Ltd. Has suffered a loss of

Rs779.80.
Air India account for the largest share of the

loss but Airline is continued to funded by the Government.

Challenges for Company

Increase in fuel prices.
Increase in Dollar Cost. Entry of new players in to market.

Conclusion
Increase in fuel prices is challenge for company. Company will be facing stiff competition from new

players.
IndiGo's consolidated profits for the past five

years have hit around Rs 2,200 crore.