India`s IndiGo Q3 profit soars as air travel takes off
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InterGlobe Aviation Ltd, the operator of India's top airline IndiGo, on Friday reported an eleven-fold jump in quarterly profit led by a pick up in demand for air travel.
The airline has been contending with surging fuel costs and currency volatility that hit profit for the past three quarters.
However, a sharp recovery in demand for air travel to near pre-COVID levels in the domestic and international markets more than offset the fuel expenses.
IndiGo projects capacity in available seat per kilometre this quarter to expand to around 45% from a year earlier.
Yields, a metric for profitability, rose 21.9% to 5.38 rupees per kilometre from a year earlier, while the carrier's load factor, or the passenger carrying capacity being utilized, improved 5.4 percentage points to 85.1%.
"It was a very strong quarter on the demand side and IndiGo performed very well. We are now back at meaningful levels of profitability," Chief Executive Officer Pieter Elbers said in a conference call with analysts and investors.
