Indigo crash lands

Inter Globe Aviation (Indigo) is a big loser in today’s otherwise booming market and this is despite its very good Q3FY16 performance. It reported a profit of Rs 657 crore, up 24% (YoY). This is the highest ever quarterly profit by the decade-old IndiGo and first profit after going public last November. It is also the highest ever quarterly profit reported by any Indian carrier.

But the disappointing news came in during the post results conference call wherein the management said that it might miss the target of taking up 111 aircraft in FY 2016 after delay in delivery of Airbus A320 neo aircraft.

Last month, the company had said that it had got an official note from Airbus stating that A320 which was ready for delivery on 30th Dec, has been delayed due to industrial reasons.

Indigo during the day lost 20% , going down to Rs.958 and it has recovered a bit and is now at Rs.971, down 19%.