IndiGo Shares: Shares of InterGlobe Aviation Ltd (IndiGo) surged as much as 10 per cent after the company said it is planning to raise fares to return to profit after posting loss in the March quarter. The markets also cheered higher revenue on the back of a rebound in traffic and yield improvement. Yield is the average amount of revenue received per paying passenger flown one mile.
However, hit by the Omicron wave of COVID-19, the domestic budget carrier, posted a widening consolidated net loss at Rs 1,681 crore in the quarter ended March 31, 2022. The aviation company had posted a net loss of Rs 1,159 crore in the year-ago period.
India’s biggest airline reported a larger loss for the fourth quarter as higher fuel costs more than offset a rebound in demand for air travel. However, it saw an increase in the number of passengers by 10.3 per cent compared to the same period last year.
The revenue from operations increased 28.8 per cent to Rs 8,020.74 crore in the quarter under review from Rs 6,222.94 crore in the same quarter last fiscal, on a strong traffic rebound in the latter half of the quarter, it added.
IndiGo’s EBITDAR came at Rs 171.8 crore with EBITDAR margin of 2.1 per cent, compared to EBITDAR of Rs 648.3 crore with EBITDAR margin of 10.4 per cent, respectively, for the same period last year.
Commenting on the results, IndiGo’s CEO, Ronojoy Dutta said, “This quarter has been difficult because of the demand destruction caused by the Omicron virus in the first half. Although traffic rebounded and demand was robust during the latter half of the quarter, we were challenged by high fuel costs and a weakening rupee.”
“We believe IndiGo is best positioned to maximise revenue in a recovering market. As we work to return the airline to profitability, we are focused on maintaining our cost leadership position and continuing to build the most efficient network in the region,” he added.
Read all the Latest Business News here
Comments
0 comment