Indian airline company IndiGo is aiming to run at full capacity domestically, its CEO Ronojoy Dutta told Bloomberg in an interview on Friday, adding that the budget carrier’s current load factor is around 70% and yields are likely to rise in the coming months.
“Things are improving slowly.. it’s hard not to be bullish as traffic is going up,” IndiGo Chief Executive Officer Ronojoy Dutta told Bloomberg Television. The airline is also targeting just over two-thirds in international routes as the virus pandemic eases and people start traveling more.
The ministry of civil aviation in August allowed domestic airlines to increase flight capacity to 72.5% from 65% in July. Though, the extended ban on international flights continue till September 30.
Even as current cash levels were “pretty good,” Dutta said the airline wanted to raise funds as an insurance buffer against a possible covid third wave.The domestic budget carrier, operated by Interglobe Aviation, consolidated year-on-year net loss widened to ₹3,174 crore in the quarter ended 30 June, 2021 as compared to ₹2,844 crore in the year-ago period.
The losses have continued ever since the pandemic brought global travel to a near-halt and battered airlines worldwide. Just as the airline showed recovery signs last year, the sector was hit by the renewed travel restrictions.