IndiGo profit beats estimates on strong travel demand for Maha Kumbh

InterGlobe Aviation Ltd., which operates India’s largest airline IndiGo, reported quarterly profit that surpassed analyst estimates, boosted by solid travel demand that was helped by a six-week-long religious gathering in northern India.

Net income rose 62 percent to Rs30.7 billion ($358 million) in the three months ended March 31, the carrier said in a filing Wednesday. That beat the average analyst estimate of Rs25.74 billion profit.

The airilne also announced a dividend of Rs10 per share.

Revenue climbed 24 percent to Rs221.52 billion compared with the same period last year and also exceeded estimates. Total costs rose 19 percent to Rs199.28 billion, with fuel costs for the no-frills airline at Rs67.53 billion.

Domestic air travel surged in the March quarter, especially during the Maha Kumbh mela. Considered the largest religious gathering in the world, it took place from January 13 to February 26 with about 660 million visitors converging at the northern Indian city of Prayagraj for a holy dip in the Ganges river.

Passenger traffic rose 10.3 percent in the three months ended March from a year earlier, according to aviation ministry data. While there were higher footfalls generated by Maha Kumbh, the growth reflects strong underlying travel trends, Jefferies analysts wrote in an April 7 report.