IndiGo CEO says gains from Jet Airways’ grounding to fade from June

Low-cost carrier IndiGo believes that gains from higher airfares following the grounding of Jet Airways will fade away from June, with rival carriers deploying aircraft on the vacant capacities.

IndiGo chief executive officer Ronojoy Dutta on Monday said Jet’s grounding helped the airline raise fares but the boost to ticket price will come down with airlines rushing to fill seats on the newly deployed aircraft.

“The gains from grounding of Jet (Airways) started from last week of February and whole of March, helping the unit revenues (revenue per available seat kilometre) to increase by 3-4%. Revenues in April were also stronger. But in May we expect gains to somewhat dissipate and by June to fully disappear,” Dutta said on a post-earnings call.