Share price of InterGlobe Aviation gains 7% over six days, driven by rising passenger traffic and market expansion

Market Performance

InterGlobe Aviation's stock extended its positive momentum for the sixth consecutive trading session on February 24, reaching Rs 4,543 per share. This marks an overall gain of 7 per cent during this period. The airline's performance aligns with the increasing demand for air travel and the market expansion trend.

Key Developments

A rise in passenger traffic, particularly to airports in Uttar Pradesh due to Maha Kumbh, has contributed to the growing demand for air travel. This increase in traffic is expected to influence passenger load factors (PLFs) in Q4FY25, even though this quarter is traditionally weaker in terms of seasonal demand.

Financial Performance

In the recently concluded Q3, InterGlobe Aviation reported financial figures reflecting both revenue growth and cost pressures:

• Revenue: Increased by 14 per cent year-on-year (YoY) to Rs 22,111 crore.
• Net Profit: Rs 2,449 crore, an 18% YoY decline 
• Available Seat Kilometers (ASK): Rose by 12 per cent, contributing to revenue expansion.
• Revenue Passenger Kilometers (RPK): Increased by 13.5 per cent, reflecting higher passenger volume.
• Cost per ASK without fuel: rose by 23.1 per cent YoY to Rs 3.25, influenced by inflationary pressures and higher operational costs.
• EBITDAR: Increased by 10.7 per cent to Rs 6,059 crore.
• EBITDAR Margin: Declined by 70 basis points YoY to 27.4 per cent due to rising costs.

Summary

InterGlobe Aviation has witnessed sustained stock growth over the past six sessions, supported by rising air traffic and increasing market demand. Despite revenue expansion, profitability faced challenges due to elevated costs. The airline's capacity growth at a time when competitors face constraints has positioned it firmly in the domestic aviation market. The upcoming quarters will be essential in evaluating whether demand trends continue to support financial performance.