InterGlobe Aviation, the operator of low-cost airline IndiGo, on July 26 said that despite July-September being a seasonally weak quarter, it does not expect its yields in the ongoing quarter to fall when compared to the same period last year.
The airline's management while addressing a post-earnings conference call on July 26 said that IndiGo's yields in Q2FY25 will likely fall when compared to Q1FY25 but are not expected to dip below the levels seen in Q2FY24.
InterGlobe Aviation's yield per passenger rose to Rs 5.24 in the June quarter from Rs 5.18 a year ago, the company said in a press release on July 26. However, its yield per passenger in Q2FY24 stood at Rs 4.44.
"Last year (2023-24) was the first full year after the pandemic and yields were still recovering. So we don't expect yields in the on-going quarter to fall below last years level despite a fall in demand," the company's management said.
The airlines' management also said that some states increasing the value added tax (VAT) on jet fuel or aviation turbine fuel along with airports in the country hiking certain airport fees is creating an inflationary environment for aviation in the country.
“Currently, we are experiencing a higher inflationary environment… it is across the board, we are experiencing, nonetheless, we are looking at ways on how to control the costs,” the company’s management while speaking in the airline’s post-earnings conference call on July 26 said.
IndiGo in Q1FY25 posted a profit of Rs 2,736 crore, down 11.5 percent as compared to a net profit of Rs 3,090.6 crore in the same period a year ago mainly due to a 22.7 percent rise in the airline’ aircraft fuel expenses, which rose to Rs 6,416.5 crore.
When compared year-on-year, ATF prices in April 2024 stood at Rs 1,00,893.63 per Kilo Litre, 2.6 percent higher at than Rs 98,349.59 per Kilo Litre in April 2023. Similarly, jet fuel in June 2024 stood at Rs 94,969.01 per Kilo Litre, 6.34 percent higher when compared to Rs 89,303.09/kl in the same period in 2023.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
