Home ›› 01 Nov 2021 ›› Stock
Shares of InterGlobe Aviation Ltd, the operator of India’s biggest airline IndiGo, were on track for their worst day in 10 months on Friday, a day after it warned that fuel prices were clouding an ongoing recovery and posted a bigger loss.
High fuel prices pose a threat to a recovery in the pandemic-battered aviation industry across the globe, with U.S. airlines warning a complete return to profit may be delayed as higher prices overshadow strong demand.
Though revenue is fast returning to normalcy and passenger load factor, or the passenger carrying capacity being used, is expected to be around 76 per cent in October, fuel prices are worrisome, Chief Executive Officer Ronojoy Dutta said in a post earnings call.
Average revenue booked per day in October was the same as it was in pre-pandemic January 2020, even though the airline was operating at 20 per cent less capacity, Dutta added.
Yields, a metric for profitability, grew 20.4 per cent to 4.19 rupees compared with the previous quarter, and Dutta said he expects higher yields to be sustainable going forward.