InterGlobe Aviation, the operator of India’s largest airline IndiGo, reported a significant increase in its net profit for the December quarter. The airline, which commands over 60% of India’s domestic market, recorded a profit of ₹2,998 crore, compared to ₹1,422 crore in the same period last year. This marks the fifth consecutive quarter of profits for IndiGo and a return to net positive territory since the start of the pandemic.

The increase in profit is attributed to the combination of robust demand for air travel and the imposition of a fuel surcharge. IndiGo’s revenue climbed 30% to ₹19,452 crore. The airline’s strong performance is also reflected in its yield, which increased by 2% to ₹5.48. This is a positive outcome considering the challenging conditions faced by the domestic aviation market.

According to Pieter Elbers, chief executive of IndiGo, the success is largely attributable to the confidence shown by passengers. The airline benefitted from a favourable mix of strong demand and higher fares, due to a capacity shortage in the market. Additionally, lower jet fuel prices have contributed to the reduction in unit costs.

However, IndiGo’s capacity expansion during the current quarter is expected to be 12% lower than the growth recorded in previous quarters due to the grounding of over 70 aircraft and supply chain constraints. The grounding of aircraft is a result of issues with Pratt & Whitney engines. Gaurav Negi, IndiGo’s chief financial officer, said the high fare regime is likely to continue at least for the first half of the year due to the capacity constraint.

Despite the challenges, the airline remains optimistic about its future prospects. IndiGo had a fleet of 358 planes as of December-end, up from 334 in the previous quarter, and operated at a peak of 2,016 daily flights during the December quarter.