Indigo's return to profit fuelled by softening of ATF prices and increasing demand: Check details
Being a market leader and having stability in airfares will benefit the airlines since ATF (Aviation Turbine Fuel) accounts for about 40 per cent of airlines' expenditure.
Interglobe Aviation – the operator of India’s largest airline IndiGo — has corrected its course and it now looks set to return to path of profit. The domestic airline is expected to return to profitability in quarter 3 of financial year 23. It comes as a relief to the company due to softening of fuel prices and increasing demand.
Being a market leader and having stability in airfares will benefit the airlines since ATF (Aviation Turbine Fuel) accounts for about 40 per cent of airlines' expenditure.
The airline reported 8.9 per cent year-on-year (YOY) increase in fly per week in November whereas the airline's rival- SpiceJet reported 27 per cent year-on-year (YOY) drop in SpiceJet flights per week in November.
The airline is expected to a recovery and Rs 2800 crore profit is possible in H2FY23. The airline had earlier reported a loss of Rs 2647 crore in H1FY23.
IndiGo Q2 result
IndiGo’s losses surged to Rs 1,583.34 crore in the September quarter owing to higher fuel costs and foreign exchange loss. The airline, also the world's seventh largest in terms of daily departures, reported a loss of Rs 381.8 crore, excluding the foreign exchange loss of Rs 1,201.5 crore, in the latest quarter under review. In the September quarter last year, the airline had a loss of Rs 1,435.66 crore.
However, the total income of the company rose to Rs 12,852.29 crore in the second quarter of the current fiscal from Rs 5,798.73 crore in the same period a year ago, according to a release. The airline's total expenses jumped to Rs 14,435.57 crore this quarter.
IndiaGo Share Price NSE
Shares of Interglobe Aviation Ltd, NSE: INDIGO traded flat on November 25, Friday.
The stock opened at Rs 1,910.00 and closed at Rs 1,901 on NSE.
The stock of the airline has gained 5 per cent in last 6 months. The stock has a market cap of Rs 73.55 thousand crore and 52-week range of Rs 2,282.10 to Rs 1,511.75.
Click Here For Latest Updates On Stock Market | Zee Business Live
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Stocks to Buy for Long Term: 1 smallcap, 3 midcap, 4 largecap stocks analysts are betting on now; check out targets
Top Gold ETF vs Top ELSS Mutual Fund: Which of 2 has given higher return on Rs 15,000 monthly SIP investment for 3 years
Top 10 Large Cap Mutual Funds With Highest SIP Returns in 5 Years: Rs 12,500 monthly SIP in No. 1 fund has turned into Rs 19.11 lakh; what others have done
Top 7 Small Cap Mutual Funds With Highest SIP Returns in 15 Years: Rs 8,333 monthly SIP in No. 1 fund has jumped to Rs 1.10 crore
EPF Interest Calculation: What will be retirement corpus on Rs 3,000, Rs 6,000, or Rs 9,000 monthly contribution for 25-year-old
05:02 PM IST