IndiGo targets full capacity domestic flights by Dec, looks to raise funds

IndiGo is planning to operate domestic flights at full capacity and is aiming to run just over two-thirds in overseas routes as the COVID-19 pandemic situation alleviates and people begin travelling more. 

The budget carrier's CEO Ronojoy Dutta said "things are improving slowly", adding that it was "hard not to be bullish as traffic is going up." 

Talking to Bloomberg TV, Dutta further stated that the present load factor for IndiGo is around 70% and yields are expected to increase in the coming months.

Also Read: COVID-19 impact: IndiGo announces compulsory leave without pay policy for senior employees

He noted that current cash levels were "pretty good" though the company wanted to raise funds as an insurance bulwark against a possible third COVID wave. 

India's air travel revival could turn out to be a brief one as analysts anticipate that a new COVID wave may peak in October.

The government has suspended international flights until September 30 and restricted the passenger capacity on domestic services to 72.5% of pre-pandemic levels.

IndiGo, which is run by InterGlobe Aviation Ltd., reported a net loss of Rs 3,174 crore for the three months to June,  primarily due to a sharp decline in revenues amid the second wave of the coronavirus pandemic.

Also Read: IndiGo in a do-or-die situation post highest-ever quarterly loss in Q1

The airline, which had a fleet of 277 planes at the end of June 2021, incurred a net loss of Rs 2,844 crore in the year-ago period.

The carrier's consolidated total income increased by 177.2 per cent to Rs 3,170 crore in the first quarter of the current financial year, it said in a statement.

The total income stood at Rs 1,143 crore in the first quarter of the previous financial year.

The airline's total expenses increased by 59.2 per cent to Rs 6,344 crore in Q1 of 2021-22, compared to Rs 3,986 crore earlier.