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IndiGo profits in FY2012 to be a 'fraction' of the USD130m profit result in FY2011

15-Mar-2012 1:01 PM

IndiGo president Aditya Ghosh said the carrier will see a decline in FY2012 profits due to high fuel costs and low margins, as reported by the Business Standard. "Margins were under huge pressure because average price of fuel is now higher than what it was in 2009. There has been a growth in revenue and we will turn out to be profitable at end of the year. It will be much smaller profit than we have done in previous year,'' he said. The carrier reported 18% increase in profit to INR6.5 billion (USD130 million) in FY2011 but expects the FY2012 result to be a "fraction" of this figure. "For us profitability means that we are able to get spare parts on time, pay salaries on time, maintain integrity of schedules and plan for growth," he stated.