IndiGo: Near term outlook to be tough; weak demand, higher costs to weigh

Pegged back by the suspension of international flights for two weeks and domestic operations for nine days, IndiGo reported a muted operational performance in a seasonally weak quarter. Though capacity increased, lower passenger volumes was reflected in the 310 basis points fall in load factor, which capped revenue growth at 5.3 per cent over the year-ago quarter. Higher unit revenues and yield, however, helped offset some of the weakness in passenger volumes. Higher costs on a weak revenue base aggravated the operating leverage, leading to a loss at the operating level. While fuel costs.....

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel
Key stories on business-standard.com are available to premium subscribers only.

Already a premium subscriber?

Subscribe to get an across device (Website, Mobile Web, Iphone, Ipad, and Android Phone applications) access to Premium content, Breaking News alerts, Industry Newsletters, Stock and Corporate news alerts, access to Archives and a lot more.