Indian carrier IndiGo stays profitable on demand, forex boost

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Key Points

Interglobe Aviation Ltd , the operator of Indias top airline, IndiGo, reported a second consecutive quarterly profit on Thursday, boosted by foreign exchange gains and as strong demand for air travel more than offset a jump in fuel expenses.Indias biggest airline by market share has benefited from a strong post-pandemic recovery in domestic air travel in the worlds third-largest aviation market...

The carrier flew 23.4 million passengers between January and March, 60.5% more than the year-ago quarter and nearly 5% higher than the previous quarter..

Its yield, a metric for profitability, rose 10.2% year-over-year to 4.85 rupees per kilometre in the fourth quarter, while load factor, a metric of how full its planes are, improved by 7.5 percentage points to 84.2%.IndiGos available seat kilometres, or passenger carrying capacity, grew 49.2% year-on-year to 30.4 billion, more than its own forecast..

IndiGos revenue grew 76.5% in the quarter, slightly outpacing the 74.3% jump in fuel costs.The company has been grappling with high fuel costs and foreign exchange volatility, which dragged it to losses in the two first two quarters of last fiscal year.But,.

It last posted two consecutive profitable quarters in the first half of 2019.Going forward, IndiGo is expected to benefit from the turmoil at smaller rival Go First, which filed for bankruptcy earlier this month..

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