India’s IndiGo is looking for “wet lease” aircraft to meet travel demand | Tech US News

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BENGALURU, Nov 4 (Reuters) – InterGlobe Aviation Ltd ( INGL.NS ), the operator of major Indian airline IndiGo, said on Friday it is looking to “wet lease” aircraft to meet growing demand for air travel as disruption of the supply chain leads to delays in the delivery of new aircraft.

A “wet lease” arrangement is one in which the lessor maintains operational control of the flights while providing aircraft and crew.

The airline has extended some of its existing leases and postponed the return of planes, its new CEO Pieter Elbers said during an analyst call after IndiGo reported a second-quarter loss.

“Another item that is being discussed today, and we are still in the final stages of clarification, is a possible wet lease operation,” Elbers said, adding that the market is recovering very quickly.

Demand for air travel both within India and to international destinations has recovered to near-Covid levels.

IndiGo said it was optimistic of returning to operating profitability in the current quarter after its loss in the July-September period widened due to high fuel expenses and foreign exchange losses.

The airline expects an increase of about 25% in capacity measured by available seats per kilometer in the current quarter compared to the previous year. It also maintained guidance for a capacity increase of 13% to 17% for the current fiscal year.

“In the coming years, we will build on our solid (national) foundations with more international aspirations,” Elbers said.

Fuel costs tripled during the second quarter from the year-ago period, while foreign exchange losses due to a weaker rupee stood at 12 billion rupees ($145.88 billion) for the three months, IndiGo said .

Yield, a measure of profitability, rose 21% to Rs 5.07 per kilometer from a year earlier, while the carrier’s load factor, or passenger carrying capacity being used, rose to 79 .2% from 71.1%.

The company’s loss widened to Rs 15.85 billion in the July-September quarter from Rs 14.4 billion a year earlier.

Income from operations doubled to Rs 124.98 billion from Rs 56.08 billion a year ago.

($1 = 82.2600 Indian Rupees)

Reporting by Nallur Sethuraman in Bangalore; Editing by Sriraj Kalluvila and Vinay Dwivedi, Kirsten Donovan

Our Standards: The Thomson Reuters Trust Principles.

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