IndiGo assessing Pratt & Whitney engine trouble, posts record profit in June quarter

Despite reported its highest-ever quarterly profit of Rs 3,090.6 crore in the June quarter, IndiGo operator Interglobe Aviation on Wednesday said it was assessing the impact on its fleet due to troubled Pratt & Whitney engines, and that it expects a fall in yield due to seasonal weakness in the second quarter.

According to Reuters, Pratt's owner RTX said last week that some engines have to be removed from planes and inspected for micro cracks.

The impact for IndiGo in the initial phase will be a "net single digit number of engines," IndiGo CEO Pieter Elbers said in an analyst call.

IndiGo posts record Rs 3,090.6 crore profit in June quarter

IndiGo on Wednesday reported its highest-ever quarterly profit of Rs 3,090.6 crore in the June quarter, as tailwinds of strong operational performance and favourable market conditions bolstered the financials of the country's largest airline.

The carrier's parent, InterGlobe Aviation, also posted its highest-ever quarterly total income of Rs 17,160.9 crore in the first quarter of the current fiscal and also announced plans to set up a venture capital entity.

Besides, the airline said that "single-digit" number of planes are expected to be impacted in the first phase of inspection of engines by Pratt & Whitney for certain anomalies.

IndiGo, which had 316 planes in its fleet at the end of June 2023, had registered a loss of Rs 1,064.3 crore in the 2022 June quarter.

In a release, the airline said in the latest June quarter, it had the highest-ever quarterly profit of Rs 3,090.6 crore and that "reflects strong operational performance, execution of our strategy and favourable market conditions".

Total income or revenues stood at Rs 13,018.8 crore in the three months ended June 2022.

"We produced strong operational performance and welcomed the highest number of quarterly passengers which enabled us to generate the highest ever quarterly revenue and net profit for the quarter ended June 2023," IndiGo CEO Pieter Elbers said.

IndiGo has now raked in profit for three consecutive quarters after being hit by the Coronavirus pandemic.

During the June quarter, cash-strapped Go First stopped flying and other airlines, including IndiGo, made efforts to partly fill in the capacity gap.