IndiGo rose by 9.94 per cent to hit a high of Rs 1,808.50 in early trade.
New Delhi:
Shares of InterGlobe Aviation Ltd, operator of India’s largest airline IndiGo, rose over 4 per cent in deals late on Thursday after the carrier said it expected to raise ticket prices.
As of 11:24 am, the stock was trading 4.47 per cent higher at Rs 1,716.90 on BSE. IndiGo rose by 9.94 per cent to hit a high of Rs 1,808.50 in early trade.
“Profitability is top of our mind,” IndiGo CEO Ronojoy Dutta said in an earnings call.
“You almost have to hit the point – the sweet spot – right, because you can drive up the fares and then at a certain point the demand really drops. There is a tug of war going on between very good revenue performance and very challenging fuel ,” said Mr. Dutta.
On Wednesday, the airline reported big losses for the fourth quarter (Q4) as higher fuel costs more than offset a rebound in air travel demand.
Net loss stood at Rs 1,680 crore for the three months ended March 31, as against Rs 1,159 crore a year ago.
However, revenue from operations rose 29 per cent to Rs 8,021 crore on resurgence in air travel demand. The passenger load factor, or passenger-carrying capacity being used, increased to 76.7 percent.
The profit margin yield rose 19.2 per cent to Rs 4.40.
Last week, IndiGo appointed Peter Albers as its new CEO. Mr Albers will take over from 1 October after Mr Dutta retires on 30 September.
In February this year, IndiGo co-promoter Rakesh Gangwal had resigned from the board of directors of parent company InterGlobe Aviation, saying it would gradually reduce the equity stake in the airline over the next five years.
Mr. Gangwal and his related entities hold about 37 per cent stake in this company. Mr. Bhatia and his related entities own about 38 per cent of InterGlobe Aviation.