Indigo is the largest carrier by fleet size in India and has the biggest share in domestic aviation market. The company had showed losses in seven straight quarters up until now.
The airline has reported a profit of Rs 129.8 crore on Rs 9,294.7 crore revenue from operations in third quarter of FY22. This came as a relief for the airline as it can finally trim the losses that have been piling up past 9 months. After Q3 FY22 results the losses will get trimmed to Rs 4,480 crore. In second quarter of FY22 Indigo showed the loss of Rs 1435.6 crore. The profitable results will offer a hope to the stakeholders and employees of the company and it also showed that world is returning to normal.
Indigo has also announced the appointment of new managing director; this post was vacant from some time. Co-promoter Rahul Bhatia has been appointed as Managing Director of Indigo.
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The government had decided to withdraw all the restrictions and all the flights were allowed to operate as per approved winter schedule. The announcement was made by the government on October 18, 2021 after which airlines got freedom to add more flights as per the demand. Due to which airlines could get more traffic and generate profits.
The state governments also played a part in this as they removed restrictions. Fully vaccinated passengers were exempted from producing a negative RT-PCR report. This reduced the cost of travelling hence attracting more people to fly.
Fare cap duration was also reduced to 15 days which meant that airlines were allowed to price tickets at their will on 16th day. This means that airlines could increase the demand by stimulating prices. There was a strong demand of flight tickets in November and December which helped the Indigo to make the most of fair cap duration and increase fair on many routes.
