IndiGo parent company InterGlobe Aviation posts smaller June quarter loss

InterGlobe Aviation Ltd, the operator of India's top airline IndiGo, posted a smaller loss for the June quarter, powered by pent-up demand for air travel.

Yields, a metric of profitability, rose 50.3 per cent to 5.24 rupees per kilometre, while passenger load factor, or the passenger carrying capacity being utilized, increased to 79.6 per cent from 58.7 per cent for the first quarter ended June 30.

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The results come as IndiGo has seen a churn at the top, while reports of an exodus of its ground crew and technicians to other airlines have also been doing the rounds.

Revenue from operations jumped four-fold to Rs 12,855 crore.

The company's loss narrowed to Rs 1,065 crore ($134.46 million) from Rs 3,179 crore in the year-ago quarter, when many Indians avoided flying during the second wave of the pandemic.

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IndiGo expects a jump of about 70-80 per cent in capacity in available seat per kilometre in the current quarter from the same period a year earlier.

Although demand has picked up, high fuel costs and inflation have emerged as a big concern for airlines.