Wednesday, July 31, 2019

MakeMyTrip Grows Despite Turbulence in India’s Airline Sector

MakeMyTrip reported continued growth on Tuesday in defiance of India’s challenging domestic air travel market.
India’s air market has been in turmoil. In April, Jet Airways India ceased operations, grounding its 124 aircraft. The Indian government also spent recent months reviving its attempt to sell Air India, whose troubles have continued.
But the Indian online travel company didn’t let the upheaval hold it back.
During the three months ending June 30, the group boosted its adjusted revenue by 21 percent, year-over-year, to $198.5 million. Adjusted revenue numbers reflect a more accurate picture than the unadjusted ones, according to Skift Research, because last year MakeMyTrip switched to a new national accounting standard without restating past performance. The adjusted numbers also smooth out swings in currency shifts between the Indian rupee and the U.S. dollar during the period.
MakeMyTrip Group’s revenue rise was mainly due to a 14 percent rise in its air ticketing revenue, to $44.6 million for the period. Experts chalked up some of that gain in selling plane tickets to a boom at IndiGo, a carrier with now about half of India’s domestic air market.
MakeMyTrip Group remains unprofitable. During the quarter, the company narrowed its operating loss to $42.9 million, which was an improvement of $2.6 million when compared with a loss of $45.5 million suffered during the same period a year earlier.
30/07/19 Sean O'Neill/Skift
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