Profit Slump Wipes Out $640 Million From IndiGo Market Value
- Pratt engine issues add to pressure from oil prices, fare war
- Idled jets may fly by end of quarter as spare engines arrive
An aircraft operated by IndiGo prepares to land at Chhatrapati Shivaji International Airport in Mumbai, India.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
IndiGo, India’s biggest airline, fell to the lowest in 16 months as rising fuel prices and a weaker rupee led to its worst-ever quarterly profit in a fiercely-competitive market.
The carrier, operated by InterGlobe Aviation Ltd., said net income dropped 97 percent to 278 million rupees ($4 million) in the three months through June, its worst quarterly result since listing in 2015. That compared with the average analyst estimate of 5.1 billion rupees. The stock slid 8.8 percent as of 2:45 p.m. in Mumbai, the worst performing stock in the 26-member Bloomberg World Airline Index.