Shares in InterGlobe Fall Sharply Despite Strong Earnings
22 Enero 2016 - 1:45AM
Noticias Dow Jones
By Santanu Choudhury
NEW DELHI--Shares in InterGlobe Aviation Ltd.--which runs
India's largest airline IndiGo--plunged more than 18% Friday due to
investor concerns over a prolonged delay in the delivery of A320neo
planes by Airbus Group SE.
The sharp fall in the Indian company's stock price came despite
it posting a 24% rise in quarterly net profit on the back of lower
fuel prices and higher passenger traffic.
IndiGo's President Aditya Ghosh said the carrier has decided to
take 22 used aircraft on lease to make up for the capacity shortage
caused by the delay in delivery of the A320neo aircraft.
IndiGo was informed by Airbus in mid-December that it wouldn't
be able to deliver the first A320eo as promised by the end of
December due to "industrial reasons."
Airbus said it delayed the first delivery of its new plane after
it and engine maker Pratt & Whitney, a unit of United
Technologies Corp., failed to get all required documentation ready
in time. Pratt & Whitney--which has faced obstacles in
developing the A320neo's engine--has acknowledged that some issues
related to the documentation of the engine still need to be
resolved.
"We continue to monitor the situation and are engaged in
extensive discussions with Airbus as well as Pratt & Whitney,"
said Mr. Ghosh in a conference call with analysts late Thursday.
IndiGo currently has a fleet of 101 Airbus planes.
He said the airline doesn't have any clarity as to when it would
receive the first A320neo plane from Airbus.
The delay in the delivery of the planes means IndiGo won't be
able to meet its aim of having a fleet of 111 planes by the end of
March, Mr. Ghosh said.
IndiGo is by far the largest customer for the A320neo, with 430
planes on order with Airbus. Deutsche Lufthansa AG is set to become
the launch operator of the A320neo after it received the first
aircraft on Wednesday.
The A320neo is an upgraded model of Airbus's popular
single-aisle plane. Airbus said the new model will be 15% more fuel
efficient than its existing narrowbody planes.
Mr. Ghosh said the carrier has already taken delivery of 17 used
planes and two more would be added to its fleet in the current
quarter, and the remaining three in the quarter ending
September.
InterGlobe's profit in the three months ended Dec. 31 increased
to 6.57 billion rupees ($97 million), from 5.31 billion rupees a
year earlier. Revenue grew 12% to 44.07 billion rupees.
The company's fuel expenses fell 20% in the last quarter. That
was offset partly by higher rental fees for aircraft and their
engines. IndiGo carried 28% more passengers during the quarter to
8.33 million passengers.
Shares of InterGlobe fell more than 18% to 980 rupees in
intraday trading on the Bombay Stock Exchange. It was the biggest
fall since the company got listed in November last year.
Write to Santanu Choudhury at santanu.choudhury@wsj.com
(END) Dow Jones Newswires
January 22, 2016 02:30 ET (07:30 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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