DELHI- India’s leading low-cost carrier, IndiGo Airlines (6E) is fined $5,832.60 by US Customs and Border Protection due to a delay in immigration fee payment.
Today (July 26, 2024), Interglobe Aviation, the parent of IndiGo Airlines will report the financial results for the first quarter (Q1) of 2024.
IndiGo Airlines Fined by US Customs
The airline got word of the penalty on July 24. IndiGo says it’s looking into ways to get the fine waived. They claim this won’t hurt their money or day-to-day work.
The airline had to pay an “immigration user fee” to the US. They didn’t pay it on time, so they got in trouble. This fee is a “non-interlineable tax,” which means other airlines can’t cover it for them.
Even with this news, IndiGo’s parent company, InterGlobe Aviation, saw its stock go up. Shares rose 1.22% to Rs 4,430.50 on the BSE Thursday.
IndiGo told everyone about the fine in a required filing on Thursday. They’re telling investors not to worry. The company says this won’t cause big problems for their business or how they run things.
Those who are wondering about US customs and border protection. So let me give you a brief on it. United States Customs and Border Protection (CBP) guards America’s borders. This big agency works under the Department of Homeland Security. CBP does many important jobs to keep the country safe and running smoothly.
CBP watches who and what comes into the U.S. They check people and goods at airports, seaports, and land crossings. Their officers make sure everyone follows the rules when entering the country.
The agency also helps businesses bring products into America. They collect taxes on imported goods. This money helps fund government programs. CBP makes sure companies follow trade laws and pay what they owe.
Immigration control is another key task for CBP. They decide who can enter the U.S. and for how long. Officers check documents and ask questions to keep out people who shouldn’t be there.
IndiGo Airlines (InterGlobe) Q1 Results Overview
Analysts predict a double-digit drop in net profit compared to last year. This decline stems from a high base effect and supply issues due to engine problems.
The airline faces challenges from tepid passenger growth and lower load factors. These issues partly result from the crisis at Delhi’s Indira Gandhi International Airport Terminal-1 near the quarter’s end.
Despite these hurdles, IndiGo’s stock hit a record high of Rs 4,610 on June 10, 2024. The share price has surged nearly 50% this year, outperforming the 12% rise in benchmark indices.
Kotak Institutional Equities forecasts a 4% year-on-year increase in passenger count. They expect a lower load factor of 87.5% due to May’s heatwave and the Delhi T-1 crisis. Slow aircraft additions also concern analysts.
The brokerage estimates Q1 net sales at Rs 17,851.2 crore, up 7% from last year. However, they predict EBITDA will fall 8.7% to Rs 4,544 crore. EBITDA margin may shrink to 25.5%, down 437 basis points year-on-year.
Kotak projects a reported net profit of Rs 2,430.2 crore, a 21.4% year-on-year decline. This drop reflects lower fuel spreads and ongoing cost pressures from engine issues and employee expenses.
200 Passengers Stranded in Istanbul
IndiGo Airlines faced backlash on July 25 when 200 passengers endured a 12-hour delay at Istanbul Airport. The Delhi-bound flight 6E 12 was postponed due to technical issues with the aircraft.
Passenger Hriday Madan voiced his frustration on social media platform X. He described the ordeal of his journey from Milan through Istanbul to Delhi, which was disrupted by the lengthy delay.
Another traveler, Govind Kanakan, criticized the airline’s handling of the situation. He complained about stale food provided to stranded passengers and accused the operators of being unresponsive.
IndiGo responded to the incident with a statement. The airline claimed they kept passengers informed about the delay. They also said they served refreshments and made arrangements to ease the wait time at the airport.
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