Strong passenger volume help Indigo boost June quarter performance

Change in operating model and issues related to the Airbus A320neo will be key triggers

Strong passenger volumes, as well as better cost management, helped Interglobe Aviation, which operates its services under the Indigo brand, beat analysts’ estimates and post strong June quarter numbers. Higher demand reflected in the passenger load factors which were up 470 basis points (bps) to 88 per cent coupled with lower capacity addition growth helped boost operating revenues, which at Rs 5,752 crore were up nearly 26 per cent over the previous quarter. The company had to ground some of its aircraft in the quarter, given issues with the engines in the new A320neos, which impacted capacity. The company indicated