Wednesday, August 02, 2023

P&W's engine issues will affect some of our aircraft as well, says IndiGo CFO Gaurav Negi

Despite the grounded aircraft, IndiGo is confident of meeting its capacity growth guidance, the airline's management stressed during the conference call. The carrier logged its highest-ever quarter profit of Rs 3,090 crore in Q1FY24, whereas, the revenue climbed by 29 percent on-year to Rs 16,683 crore.

Negi added that IndiGo has also applied for regulatory approval to start a venture capital arm of IndiGo to invest in travel-related businesses.

"We are looking to start a venture capital firm for investments into startups operating in aviation, consumer and allied sectors such as travel & lifestyle, hospitality, and transportation," Negi said.

He added that the venture capital firm will have an initial fund of Rs 7 crore.

Negi also said that IndiGo has seen a larger-than-expected fall in yield in the second quarter of 2023-24 when compared to the first quarter of 2023-24.

He added that the airline had anticipated a 10 percent fall in yields between Q1 and Q2 due to the seasonality of travel in India, but yields in Q2 have fallen in the teens due to lower demand in the second quarter.

"Some festivals have shifted to Q1 from Q2 in 2023 due to which demand has fallen more than expected which has had an impact on yields," Negi said.

Negi also said that it has become harder to predict yields as customer booking partners have still not returned to pre-pandemic patterns. He added that IndiGo is still seeing customers book tickets closer to the date of travel when compared to pre-pandemic levels.

02/08/2023 Yaruqhullah Khan/Moneycontrol

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