InterGlobe Aviation shares fall over 3%

InterGlobe Aviation shares fall over 3%

InterGlobe Aviation shares fall over 3%

The company had said that a meeting of the board of directors of InterGlobe Aviation is scheduled to be held today to consider the approval of audited standalone financial results of the company for the quarter and year ended March 31, 2018. However, fuel expenses shot up to Rs 2,337.71 crore in the latest quarter under review from Rs 1,750.51 crore in the year-ago period. It further said that Rahul Bhatia, a promoter of the company, has been appointed as the interim CEO, the company said in the filing.

In the previous financial year, total income stood at Rs 23,967.74 crore, as compared to Rs 19,369.57 crore in the corresponding period a year ago.

IndiGo also had to cancel hundreds of flights in March when several in-flight engine failures prompted India's aviation regulator to ground eight of the airline's Airbus A320neo aircraft fitted with certain Pratt & Whitney engines. "The issues will take some time to get resolved", he said. It operates around 1,000 flights daily.

In the next four to five months, IndiGo plans to fly to five new destinations, including Dhaka.

The low fare airline ended the quarter with a fleet of 159 aircrafts, adding a net of 6 aircraft including 3 ATRs.

In the June quarter, it expects the capacity increase in ASKs to be around 18 per cent. Investors reaction can be attributed to a list of factors apart from Q4FY18 projection; firstly internal management concerns with the exit of CEO Aditya Ghosh, secondly GoAir suing their CFO Wolfgang Prock-Schauer over alleged data stealing and lastly Indian OMCs increasing their jet fuel prices.

The company board has recommended a dividend of Rs 6 per share.

"The key is to have the right cost structure in each market". It has all the commonalities with A320s but it will have more seats.

The company's stock price dropped almost 4 per cent to close at Rs 1,348.25 on BSE.

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