InterGlobe Aviation reported a 24% surge in profit in its fiscal Q3 as the operator of IndiGo, India’s biggest airline, benefited from lower fuel prices and higher traffic. Net income for the quarter that ended in December rose to 6.57b rupees ($96.6m) from 5.32b rupees a year ago, the company said Thursday. It’s the first time the carrier reported quarterly earnings since its IPO in November. IndiGo and other Asian airlines are reaping the rewards of the lowest oil price in about a decade, which helps them cut expenses and offer cheaper tickets to lure more travellers. Rising incomes in the world’s fastest-growing major economy is boosting passenger numbers for IndiGo, one of the largest customers for Airbus Group SE’s single-aisle planes in the world. “Lower fuel prices enabled us to lower our fares to our customers further stimulating market demands and increasing the propensity of people to travel,” IndiGo President Aditya Ghosh said. <br/>
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Saudi Gulf Airlines is set to obtain regulatory approvals to launch flights within the kingdom by the end of March, a top official at Saudi Arabia’s aviation watchdog said Thursday. Should the licence be granted to the privately-owned airline, it would be the first to be awarded under plans to liberalise the kingdom’s aviation market. “We expect them to fly end of March, early April,” said Abdul Hakim Al Tamimi, assistant president for safety, security and air transport at the General Authority of Civil Aviation (GACA). Only national carrier Saudi Arabian Airlines and budget operator National Air Services currently serve a domestic market of about 27 million people. Foreign carriers can only fly in and out of Saudi Arabia and not within the country.<br/>
Southwest reported Q4 net profit of US$536m, up from US$190m in Q4 2014. Earnings before special items rose 46% to US$591m, as the falling cost of jet fuel added US$189m to Southwest's bottom line. Including special items such as the change in the market value of Southwest's outstanding hedges, the company earned US$536m. The US budget airline said it would soon start a US$500m accelerated stock buyback. Southwest said it expected Q1 unit revenue to be "in line" with a year earlier. The measure fell 0.7% in Q4. "We've seen a continuation of strong demand and softer yields," or fares per mile per passenger, CE Gary Kelly said. Cheap oil has also forced Southwest to pay hefty sums to counter-parties in hedge contracts that the carrier acquired for protection in case of rising energy prices. As a result, it will not reap the full benefit of cheaper fuel.<br/>