- Wealth PMS (50L+)
Indigo Airlines witnessed a 11% drop in Average Fare Price for the period ended June, 2016. The average fare stood at Rs. 4,032/- compared to Rs. 4,524/- the last time though passenger revenues witnessed a growth of 6.9% at Rs. 3,972 crore. Domestic revenue increased by a tad 9.8% while International revenue increased by a timid 12 crore.
Though the company has witnessed a bump is the number of passengers traveled (Indigo carried 9.85 million passengers compared to 8.21 million), the average revenue realized (Load factor fell from 87.9% to 83.3%) has fallen sharply considering Q1 is the peak season and said to be the best quarter for the year. This fall can be attributed to expenses which increased a massive 17.5% to Rs. 3,994.7 crore.
Related Post: Indian Domestic Airlines Report Card for June 2016 – first dip due to seasonal fluctuations
Disclosure: Analyst or Family do not hold the stock
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