Indigo desires operations of 50% daily flights, international services in July; stock up 2%

Amid coronavirus pandemic, not all flight services have been allowed to be operational along with the continued ban on international services.

Jun 16, 2020 12:06 IST India Infoline News Service

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Interglobe Aviation (Indigo) stock was trading on a positive note during Tuesday after the airliner's CEO Rono Dutta stated that they seek to make 50% of their normal daily flight services operational in July. Also, he said Indigo hopes for resuming international operations next month as well.

Indigo which holds the largest market share in the Indian aviation industry, had halted operations for over two months before resuming domestic flight services from May 25, 2020. Amid coronavirus pandemic, not all flight services have been allowed to be operational along with the continued ban on international services.

Dutta in an interview with the Economic Times, said,  IndiGo wants to operate half of its total daily capacity of 1,500 flights in July and resume international operations, possibly to the Gulf.

According to Dutta, the airline aims to 70% capacity by March next year and 85% by April, however, believes the net profitability may still be 14 months away.

He reportedly added, "We have been very encouraged by what we have seen in the first few weeks of travel resumption. We have always known there was a pent up demand that would play out in the first couple of weeks. However, the trend since then has been encouraging. We have analysed the traffic every five days and all the trends are up," said Dutta, adding the airline's load factors are up."

Currently, Indigo has made 30% of its capacity operational, on which Dutta says, "is too low". Thereby, he told ET, "We feel very bullish about going to 50%. So, the government! Please let us get to the 50%!”

On Sensex, the Indigo stock has touched an intraday high and low of Rs1037.45 per piece and Rs1004.50 per piece respectively.

At around 12.01 pm, the stock was trading at Rs1011.90  up by 1.96% on the same index.

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