After a turbulent Q2, IndiGo and SpiceJet are poised to take off in Q3

InterGlobe Aviation Ltd and SpiceJet Ltd made a rough landing in the September quarter (Q2), reporting massive losses. InterGlobe runs IndiGo, India’s largest domestic airline by market share.

The big question now is whether the December quarter results will bring good news. The seasonally strong Q3 naturally means performance would be better compared to Q2.

Both airlines are expected to report profits in Q3. However, as one analyst points out on condition of anonymity, “Things would definitely have been better if yields were healthier.”

For airlines, yields are a measure of pricing. Unfortunately, the pricing environment for the aviation sector hasn’t been upbeat even during the festive quarter.