Shares of InterGlobe Aviation Ltd, which runs IndiGo, India’s largest airline by market share, touched a 52-week high on the National Stock Exchange during the day, before the release of March quarter results after market hours.
It was widely anticipated that listed aviation firms such as IndiGo and SpiceJet Ltd would reap the benefits of Jet Airways (India) Ltd’s crisis. IndiGo has fared well during the March quarter against that backdrop. Its yields (a measure of pricing arrived at by dividing passenger ticket revenue by revenue passenger km) increased by 12% year-on-year, exceeding Street expectations. The company’s revenues increased by 36% compared with the year-ago period. However, it remains to be seen if such healthy revenue trends sustain.
