India"™s largest airline by passengers and the only one with a consistent track record of profits, IndiGo, has just reported an almost Rs 9 crore daily net profit in the first quarter ending June 30. It has obviously beaten analyst"™ estimates about its profitability by posting the highest ever quarterly profit in this journey. For Q1, IndiGo reported revenue of Rs 5,753 crore, a growth of 26 percent year on year and 19 percent over the previous quarter. Net profit was Rs 811 crore , a growth of 37 percent year-on-year and 84 percent versus the previous quarter. Revenue per available seat kilometre (RASK) increased by 5.5 percent while cost per available seat kilometre (CASK) increased by 1.3 percent. This airline now commands nearly 40 percent overall market share but on non-metro routes, it control over half the market. Put simply, this means that 4 in 10 domestic fliers choose IndiGo but on non-metro routes, every second flier chooses this airline.
According to data compiled by analysts, IndiGo has been increasing its share in the domestic market at the expense of Jet Airways and Air India. Motilal Oswal said in a note to clients this morning that in the 13 successive quarters starting from Q1FY15 when IndiGo had just about 32 percent share, it has inched up to 41 percent now. Over the same period, Jet Airways went from controlling a fifth of the market (21 percent) to 17.58 percent now. And Air India went from 17.42 percent to 12.77 percent. SpiceJet, an LCC competitor to IndiGo, also came down from almost controlling a fifth of the domestic market in Q2FY15 to 12.96 percent now. Market share is a direct consequence of capacity and IndiGo has seen the fastest capacity addition among all domestic airlines…
