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For the first time since its launch in 2015, Vistara has seen a profitable quarter when it registered a net profit during October-December due to growth in operations and revenue.
The airline did not disclose the actual profit figure but said the result was excluding unrealised foreign exchange loss.
On a year-on-year (YoY) basis, Vistara grew its capacity and passenger traffic by 37 per cent and 47 per cent in the third quarter, respectively, it said on Monday.
Vistara’s performance during the third quarter is in line with brokerage estimates of a profitable Q3 for listed Indian carriers, including IndiGo. Earnings for Indian carriers are set to improve on the back of higher loads, better yields and correction in fuel prices.
In a statement, the Tata-Singapore Airlines joint venture said it saw strong performance in 2022, crossing $1-billion revenue. It remained earnings before interest, taxes, depreciation and amortisation (EBITDA) positive during the nine months of FY23.
Growth was achieved due to increase in frequencies on domestic routes and launch of new destinations such as Jeddah, Abu Dhabi and Muscat. Operations were also strengthened at Mumbai and Delhi airports.
In 2022, the airline flew 11 million passengers and was second in domestic market share behind IndiGo.
Overall, on a full-year basis, international and domestic capacity grew 180 per cent and 50 per cent, respectively.
The airline’s frequent-flyer membership also rose by 11 per cent.
Vinod Kannan, chief executive officer (CEO), Vistara, said: “With significant network and fleet expansion and sustained growth over the last few months, 2022 has been a phenomenal year for Vistara, in terms of our operational and financial performance.”
“We are now aiming for higher goals as we enter the next phase of our growth journey,” he added.
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First Published: Mon, January 23 2023. 13:53 IST