IndiGo, one of Asia’s biggest budget airlines, is aiming at running at full capacity domestically and is targeting just over two-thirds in international routes because the virus pandemic eases and other people start traveling more.
“Things are improving slowly,” Chief military officer Ronojoy Dutta told Rishaad Salamat and Haslinda Amin on Friday, adding that it had been “hard to not be bullish as traffic goes up.”
He said the present ratio for the airline is around 70 percent and yields are likely to rise in the coming months.
Current cash levels were “pretty good”, Dutta said, though he added that the corporate wanted to boost funds as an insurance buffer against a possible third wave.
India’s aviation recovery could end up being short-lived as forecasters predict a replacement Covid wave may peak in October. India has suspended international flights until Sept. 30 and limited the passenger capacity on domestic services to 72.5 percent of pre-pandemic levels.
The carrier, operated by InterGlobe Aviation Ltd., posted a loss of Rs 31,800 crore within the three months ended June 30, worse than a loss of Rs 28,500 crore a year earlier.
IndiGo had imposed compulsory leave-without-pay for all its employees as passenger traffic plunged to close zero thanks to the deadly second Covid wave that hit India between March and should.
To combat the cash drain, Indian carriers are raising funds. IndiGo in May said it’s considering raising Rs 3.000 crore by selling shares to large investors after it shelved the plan in January, saying some time past that internal sources of money would be sufficient as demand began to recover.