InterGlobe Aviation Limited analyst Q&A

Thanks for the opportunity. My question is actually on your comment on the 2Q ASK guidance. At mid to high single digits on a base of last year 2Q, which was also in single digit, so is it a reflection of the fact that the slowdown that you started to see in May and June because of the disruption, you are expecting it to continue this quarter as well? And if that is the case, can you maybe give some colour on whether this is mostly domestic or international, some colour there would be very helpful.

On the contrary, actually, the reflection on the ASK is largely driven by the softness that typically you see in the Q2 quarters. So, if you see historically, the Q2 quarter is the softest quarter in terms of travel related activities, at least on the domestic side. You do have travel on the international side. And that's where we continue to keep adding capacity. Like I kind of mentioned in the opening remarks, we have taken a judicious call to look at our fleet holistically in terms of ensuring that we are not spending too much capacity, but deploying our fleet towards maintenance and various activities that we need to serve our aircraft with in the Q2 quarter so that we gear up to be able to scale up in the Q3 quarter. So, deploying too much capacity in the Q2 quarter, which is the softest, doesn't make sense. So, that's what we have done. You will see that year-over-year, we have already grown a lot of capacity. And that same translates now with a single digit growth for this particular quarter. But on the whole, what I also mentioned for the whole year, we are still committed to an early double-digit growth in the capacity numbers.

Okay, yes, I appreciate the fact that 2Q is a soft quarter. But actually, my question was more regarding that last year 2Q was also a soft quarter. And on a YoY basis, still the growth seems low. But I guess you are expecting a bigger growth to come back in 3Q and 4Q?

No, every year you will find Q2 being a soft quarter. Like in Europe, every year, Q1 of the calendar year is a soft quarter. So, in India, Q2 is every year a soft quarter. So, despite the fact that it's a soft quarter, we are moderating our capacity to a single digit number. Single digit, by the way, still allows us to grow. We also have still room in the load factor to further grow. We have adjusted our capacity and made sure that, for example, we have reduced some of our damp leases and that should help us also even from a financial perspective. So, I would say it's a very normal trend. Every year you find Q2 not to be a great quarter. It was included, by the way, in our initial planning. Otherwise, we would have also revised our guidance for the entire year, which we haven't.

Okay, great. Thank you. I will come back in the queue.

Thank you. The next question is from Krupashankar from Avendus Spark. Please go ahead.

Good evening and thank you for the opportunity. My first question is on the A321XLR deliveries. We do note that there are considerable delays with respect to these capacities coming in. How does that shape up your guidance post FY26, probably over the medium term? And how do you see this ramp up coming through?

We still expect our XLR to come in this year. There is no change in that. That was perhaps, if you would have asked that question two years back, there was a different day. But this one now is very consistent. We still expect that plane to come in this year itself. And thereafter, we continue to build our network in the calendar year following, which is the calendar year of '26. We are not having yet given any capacity guidance for FY 27, and neither are we going to do today. But what we have demonstrated, I think, over the years is that we have the ability to find alternative aircraft if needed so. And clearly, the planes which I alluded to earlier, the planes which we have taken from Norse are really helping us to step up our international footprint on the longer haul as well.

Got it. The second question is on the implementation of flight duty time limitations, which started from July 1 st. Just wanted to get a sense, i s the employee cost in 1st quarter a fair reflection of the increase, which is likely because of the implementation of this norm, or you do anticipate a further increase coming in from second quarter onwards?

Krupa, the first quarter reflects the normalized increase that the employees get every year. So, it kicks in in the first quarter. That's what you get to see over here. The implementation of the FDTL starts from 1st of July. Most of it is going to get absorbed through efficiencies that we are looking in-house. The second phase starts off around the November time frame. That particular thing is still under evaluation in terms of what exactly is going to be the changes that are being kind of recommended by the regulators. So, what you see in the first quarter is largely the annual increases that are across the board for all the employees.

Okay, got it. Thanks a lot, and I will get back in the queue.

Thank you. Next question is from Binay Singh from Morgan Stanley. Please go ahead.

Hi, team. Thanks for the opportunity. A very good quarter given the volatile environment that we were facing. Two questions, one on international and one on the Mumbai airport change. On the international side, in a few calls back, we had talked about rising competition, especially from Middle East carrier in the international space. Could you comment a little bit about how is international profitability been for you? I know it's very early to comment on the long-haul flight that you've started, but any initial feedback on load factors also over there? The second is on this year, we will see the change in the Mumbai airport. Do you expect any disruption to operations or any market share losses because of that change? Only these two questions, Thanks.

Thank you. You thanked us for the opportunity, and I thank you for the reflection on this quarter by quoting it a very good quarter. That's exactly how we would reflect on it, given all what happened in India and outside India and then still to have a Rs. 2,200 crore and 11% margin was our qualification as well. So, thank you for highlighting that. Coming back to the international, indeed we have grown significantly on the international front. We had significant expansions to Abu Dhabi, Muscat, Dammam, Ras Al Khaimah, and more recently also Fujairah was added to it. And clearly , there we have competition both from the Indian operators as well as from the local operators in that part. I think we continue to believe that IndiGo is very well-positioned to deal with that competition. The four customer promises we are having underpinned by a relentless focus on keeping our cost leadership is really, really helping us to deal with that competition. The fact that the market has grown 5% to 6%, and that's a combination of domestic and international, and IndiGo has grown 12%, I think that speaks for itself in terms of dealing with that. So, that competition is there. We welcome competition. It's good it's there. But for us, we feel that our proposition and our cost leadership are equipping us very well to deal with that regional competition. When it comes to the new flights to Amsterdam and Manchester, really, I think it's a great opportunity for Indian travellers to fly nonstop to these destinations. And Manchester, again, wasn't served directly. Now IndiGo provides a direct service. I had the pleasure of being on that flight and being in Manchester myself. Wonderful to see how not only the Indian community in Manchester is responding very positive, but also the British business community is responding positive. And the recent agreemen t between the UK and India will further drive business development between the two countries. And I think our flight, therefore, is very well -timed and that allows us to step up. We have seen a very positive response. We went actually out live just after less than a month of open for sale and we have seen both bookings from the European as well as from the Indian side. Another thing maybe to highlight here, and that aligns very much with the vision of the Indian government, is that we actually do see quite a few customers connecting in Mumbai and using the IndiGo flight to connect to places in Southeast Asia or Sri Lanka or other parts where our network really provides a very competitive opportunity. And the geographical position of India clearly positions us very well to deal with that traffic as well. And for precisely that reason, we have decided to step up the number of frequencies and further build on that. To your second question on, do you expect any disturbance in Mumbai? Changing of terminals and opening and closing of it, there is always going to be some disturbance and some disruption. But I take the example what happened in Delhi with the closing of T2. I think it's actually very impressive how collectively the entire system, the airport, and the operators, have dealt with such a massive change in re - accommodating at other places then fine tuning. So, I am not ruling out that we will have some operational effects, but I am very confident that we will be able to minimize any disruption and any impact for our customers on that.

Thanks for that, P ieter. So, fair to assume no market share losses or anything that you foresee because of that change?

Market share is always an outcome. And if you see today's market share of IndiGo, it's an outcome of all the things we have been doing. And we continue to do what we do, and we are not focused on every month, whether the market share goes a bit up or it moderates or it goes down by 0.5% or whatever. So, our focus is continuing to serve our customers, keep our cost leadership, build our network. And again, I think the numbers speak for themselves.

Great. Thanks for the detailed response. Thanks.

Thank you. Next question is from Aditya Mongia from Kotak Securities. Please go ahead.

Thank you for the opportunity. I will go ahead with my question. The first one was on load factors. There is a unique position that is emanating on both domestic and international legs for IndiGo as a lead over others. I wanted to check with you whether this is more linked to let's say smart pricing yield management or is that an increasing preference for customers to fly IndiGo versus other elements that you are trying to pick up?

So, the line was a bit cracking. You asked about the load factor, that it was lower or lower compared to others. I am not exactly sure.

So, let me repeat the question. We have seen in recent months the load factor of IndiGo being much better than that of competition. And this is true in carriers both on domestic and international routes. I wanted to check whether the same is a function of smarter pricing by IndiGo or is there an increased preference that you are seeing of customers traveling IndiGo?

Yes, I would almost say all of the above, Sir. We have in that first quarter; we have an 85% load factor. And you have seen that it's slightly lower than it was last year, but significantly larger than some of our competitors. And what we do is indeed, we have a focused strategy in that. But to the two points you mentioned, allow me to add a third one. I think the network of IndiGo is really supporting that. And the fact that we do operate to the 93 destinations in the country itself makes that if we connect a new city to, especially if we connect it to one of the larger cities in the network, it's not only a connection between two points, but in fact, it adds a connection to the entire network of IndiGo. And I think that really is helpful. So, that goes for domestic, and obviously that also goes for some of the international additions we have done. They are connecting to the point they are operated from, but they are also connecting from that point to a whole lot of domestic Indian destinations. So, I think our network really should also be taken into consideration next to the other two points which you have mentioned. And therefore, the power of our network is a great asset for our customers, wherever you have to go in India, actually IndiGo serves it. And just as a reminder for everyone, 90% of the Indian population lives within 100 kilometres of an IndiGo served airport. That's a phenomenal number, I would say. And that helps us really also to stimulate the load factor.

Understood. The second question that I had was more on the fuel cost movement on a quarter- to-quarter basis. Now it seems to be much larger than what could be explained by the movement in ATF prices. Is this solely reflective of the increased fuel efficiency that is coming from damp leases going out? Or are there any other one-off factors that we should be taking into account?

So, Aditya, it's going to be a factor of where the ATF prices are. On top of that, incremental to that is going to be the damp leases that are being reduced, which was part of our network, as well as some of the negotiations that we have recently done related to our fuel being acquired from the oil market companies. So, the combination of those three factors is what is driving the fuel down

Yes, well, just to confirm, this can be sustained at the current levels if ATF prices don't change, right?

Yes. So, the first two can be, but the damp lease impact has already come through. So, as we reduce the damp leases, that would have already kind of diluted itself. So, that's already played out. But the ATF prices and the negotiated prices that we have is going to play itself out at least for this year.

Thank you. Next question is from Pulkit Patni from Goldman Sachs. Please go ahead.

Sir, thank you for taking my question. So, first is on aircraft rental. We have seen a pretty significant dip in the quarter. But parallelly, the other income number has not really changed much. Now, our understanding was that as the AOGs come back, both your other income as well as aircraft rentals will go down as the damp leases go away. So, just help me reconcile whether the current rate of airc raft rental is going to sustain? And parallelly, how does this play out in the other income number?

So, what you are looking at as the other income is largely going to be finance income that we have. You've got other operating income if you are looking at that, you will probably see a reflection in terms of what we get related to the rentals that you are trying to extrapolate. So, the aircraft rental is directly proportional to the number of damp leases that we have. So, that number continues to go down. Having said that, this number will stabilize because now we will be taking the Norse aircraft also which are coming in. So, while the narrow-body damp leases will come down, but as was called out, that we are now going to be increasing the number of leases that we have on the wide-body side. So, we already have one. There are 5 more coming in this year. So, that's why the aircraft rental line will probably reflect now more of the wide bodies than of the damp leases that we had on the narrow bodies.

Sure, this is clear. So, my second question is on yield. When you guide for yield, which will be flat on a YoY basis in second quarter based on what you are seeing today, this is what you see today or based on the assumption that it will increase through August and September?

So, given that we are giving a guidance for the whole of Q2, this is what we expect that it will be. So, we are estimating again for August and September. We are seeing some improvements that already started to happen from June to July. That same trend we are expecting will continue to keep improving going into August and September. And I am saying this on a year-over-year basis. So, on a year-over-year basis, what we are saying is we are going to be in line in terms of price to what it was last year. But having said that, we have experienced a significant softness in June. We have seen some improvement already happening in July. So, there is some bit of stabilization. We expect this to improve in August and September leading to a year -over-year kind of a flattish price that we anticipate.

Okay, very clear. Thank you so much, Gaurav.

Thanks, Pulkit.

Thank you. Next question is from Ankur from Axis Capital. Please go ahead.

Yes, hi. Thanks for the opportunity and congrats for the continuous market share gain there. First question on the overheads or the overall cost side. Just wanted your thoughts on while your earlier guidance was that on non-fuel basis, we will be likely able to maintain these numbers on a YoY basis. Any specific line items wherein you are seeing slightly higher inflationary trend, especially among the other expenses and the airport fee and charges?

So, largely on that, like I said that we are expecting that the overall CASK ex-fuel ex-forex is going to be in line with what it was last year, '25. And the '25 was a little elevated because of the damp leases that we had taken. We had taken significant amount of damp leases to offset the AOG situation. As that came down, the cost in other line items that we have across the P&L is going to have their natural inflation/escalations that are going to come in through. So, as a result, the CASK ex-fuel ex-forex for the whole year, we are expecting to be flattish compared to '25. Now this is across the line items while fuel has been a little benign. But in other line items related to maintenance, airport charges, airport fees, international airports that we have, as well as other expenses, we will have our natural inflation/ escalations that is going to come in. But the guidance has been that FY 26 is going to be in line with what FY 25 was on a unit basis, on a CASK ex-fuel ex-forex basis.

Sure, Gaurav, that's helpful. And just one clarification, the narrow body leases are coming down while the wide bodies will be going up. So, from a, let's say Q1 versus maybe a Q2 or Q3, the other operating income here will go up in sync with the increase in cost at the aircraft rental side. Will that be a fair assumption?

No. The other operating income had largely the AOG -related claims that we were getting. So, the AOG, so it's going to be directly proportional to the number of AOGs we will continue to carry. If the AOG numbers, which has been declining, so it was in the mid -70s, that's why the number used to be high. It's already moderated down to the 40s that we called up. As this number goes down, the AOG-related claims will go down. So, as a result, that particular line item will also start moderating downwards. The rental side is what you pay for these damp leases. The wide bodies will start coming in. Having said that, while the damp leases for the narrow body, we have already moderated, given it's a softer quarter, Q2, we are returning most of them. Given the Q3 and Q4 demand that we project is going to be strong, we will assess if we need more of these damp leases to then serve again the demand that we foresee coming through in Q3 and Q4.

Okay, that's helpful. Thank you and all the best.

Thank you. Next question is from Achal Kumar from HSBC. Please go ahead.

Hi, team. Thanks for taking my question. So, I have two. First of all, could you please give a bit of a colour in terms of the increased aircraft incidents in the recent months at IndiGo? What's happening there? Is there a specific maintenance problem? What exactly is happening and what are you doing? Because just taking forward from Air India crash, of course, there is a bit of fearness and then, of course, we can see a lot of increased aircraft incidents these days. So, what's happening? My second question is about, so Indian government recently increased the number of seats by 50% under the bilateral agreement with Kuwait, which is definitely an interesting move. How do you see that? And do you think we are close to further increase the n umber of seats to other Middle East destinations? Everybody is sort of begging to Indian government to increase. And if that happens, do you see increased competition from the Middle East carriers? Thank you.

Let me start with your second question. I think some of the bilateral have been changed recently. I think the Indian government has concluded bilateral agreements with Thailand, with Indonesia, and I believe there is other discussions underway. So, I think the philosophy here, and we shared that before, if there is a desire on both the foreign and the Indian side to increase the bilateral regime, then there is an opportunity to expand. But as long as both sides are not aligned on either the need or the sort of opportunity, then it's not taking place. So, I would say some of the recently concluded increased bilateral are being filled and if we take Thailand as an example, there is additional frequencies being concluded. Indian operators, not only IndiGo, but also other Indian operators are operating additional flights into Thailand. If I am correct, also Kuwait recently has been updated in terms of when it comes to the air service agreement. And that is also a reflection, I guess, of an update being done. And again, the Indian government takes a holistic approach and a holistic chance to this. And whenever there is additional frequencies being granted, Indian operators will operate them. But there has to be, and I shared that before in an international forum, it's a bilateral service agreement. So, that means that two sides must be of the view that changes have to be made. And if one side of the view is making more noise, it doesn't mean that you are more right. Coming back to your first point, I think what is important to underline, IndiGo is having in place a robust safety management system and is totally aligned with not only all local regulations and standards and protocols, but also aligned with ICAO as the international body on that. We do operate 2,200 flights on a daily basis. And that's why aviation industry as a total is still one of the safest modes of transportation. There is a lot of protocols and experiences and things coming into place. Obviously, after the tragic incident, it has a highlighted sensitivity in elements which are happening. And there is a lot of focus on things which may not got the news six months ago, which are coming in the news now. But IndiGo, as I said, has a robust system in place, continues to focus. There is always an evaluation of every event, what happens. There is a close liaison with not only the regulator, but also the OEMs whenever incidents are occurring and we learn and develop on all of them. If we look to the technical dispatch reliability of IndiGo's operation, it's a very high technical dispatch reliability. I would call it one of the leading in the industry. And with that, we continue to focus on the operation and safety can and should never be taken for granted. So, it has our daily attention and our daily focus, deeply rooted in the company and full focus on that.

Thank you. I will come in the queue.

Thank you. Next question is from Arvind Sharma from Citigroup. Please go ahead.

Hi, thank you for taking my question. My question would be on the yield trends that were reported for 1QF Y26. It was down YoY. Is it just a high base or like you said, the various unfortunate events that happened w hile you said that 2Q, it should be flattish YoY? Purely on 1Q numbers, what should one assume that how much was the impact of the high base? And how much do you think was because of the unfortunate events that unfolded in 1Q? Purely on the yield part, traffic, we have the data.

No, Arvind, if you look at April, the trending in the April, that was on a year -over-year basis was coming even stronger than what it was in FY25. So, these are all largely impacted by the events that we have spoken because our best reflection is the fact that April was coming very strong. It was on the back of a very strong Q4 also, given that we had a very strong Q4 last year. But April is an indication that the yields were holding up and were improving year-over-year basis. But these unfortunate events that transpired had then seen a significant moderation in the yield levels. Despite that moderation, like we said, the demand was very strong still. So, the moderation in the yields happened, but the demands will continue to be very, very strong. And as a result, so to your question, Q1 is more a reflection, at least from our vantage point, is a reflection of the external factors that played their role bas ed on what we saw in April. And the same trend that, like I mentioned, in July, we are seeing some stabilization. We are hopeful that August and September is going to at least offset some of those, the recovery that we are trying to do, both from a May, June, July standpoint, in terms of the trend. So, August and September is going to be better.

Thanks. Thanks so much for this. And staying with the demand, just a corollary to it. You said that 2Q, the ASK would be mid -to-high single digit because you are reassessing some of the lower traffic routes. Does that mean that from a demand perspective or RPK, if you may term that, it would not be as bad? I mean, it would be probably better than the mid to high single digit what you are building in?

Again, it's going to be a factor of also where the overall market is going to be. We are anticipating that the demand side is going to be stronger because there is a lot of capacity that the industry is taking out. Typically, in Q2, you will find most of the airlines taking out a lot of their capacities. Given the capacity is going to be lower, the demand is going to be stronger. We anticipate that the load factors are going to be stronger and likewise the demand should be stronger for us also because we see across the board reduction in capacity right now.

Sure. Thank you. Thank you so much for the answers. That's all from my side. Thanks again.

Thanks, Arvind.

Thank you. Next question is from Kushagra from CWC Advisors. Please go ahead.

Hi. Thanks for the opportunity. Just two questions. One is factoring in 2Q guidance and your comment on the full FY26 guidance. It appears that there is little room for error, and you need to add significant quote -unquote capacities, right? So, can you give us some more sense on what's going to help there? Is it largely those accelerated reversal of AOGs or it's going to be addition of new planes or some deferment of the database? Some sense there if you can give. That's the first question.

Well, it may be good to repeat that IndiGo has not only the world's largest order book, but last year there was no airline in the world which took more planes than IndiGo. We continue to have and I am not aware of all the precise order books of others, but IndiGo continues to have a plane being delivered each and every week. So, that allows us also with a combination of phasing in and phasing out the aircraft with stepping up or stepping down the number of damp leases to adjust our network very much to the s easonal demand. So, I would slightly disagree with your statement that airlines do not have a lot of ability to fluctuate their capacity on a quarterly basis. I think in the first quarter we delivered a capacity growth of 16% year-over-year. In the second quarter we spoke about we intentionally reduce it a bit in order to adjust our network and our offered capacity with the seasonality of the demand and we are very confident that we can step it up again in Q3 and Q4 by the factors which I just mentioned and those are the classical very strong quarters which by the way is pretty similar to what we have done last year in terms of our strategy. And here what you see that as the Indian aviation market matures and today already it's the third largest aviation market in the world . As the Indian aviation market matures, we will see increasingly trends which are very common in other parts of the world with high season and peak season and lower season and clearly, I think the agility IndiGo has demonstrated over the past years is also being projected on this year. So, that makes us confident that adjusted a lower I should say not adjusted a lower, a plan lower because it's in line with planning, a lower single digit growth in Q2 can be followed by a double-digit growth in Q3 and Q4.

Awesome. All right . Second question, so can you give us some sense on the increase in the aircraft cost which you have negotiated with the OEMs and this is due to this whole geopolitical stuff some sense there and if I can chip in one more data question so every time you call out that international is 30% of the ASKs on the revenue front we got this it's around 23% odd, so if you can give a some number a similar number on the profitability side as well, those were my questions. Thank you.

Again, no guidance on profitability for the future quarters . Related to the question on the negotiated cost of an aircraft, the deliveries that we are getting is actually from our 2015 order book. So, this was something that was negotiated back in 2015 , those are the deliveries. So, it kind of reflects on the pipeline to Pe iter's point the order book that we have of more than 900 aircrafts, the surety of the supply chain is reflective of the fact that even today we are getting deliveries from our 2015 negotiated order book. There is still a 2019 and a 2023 order book that is yet to be executed. So, there is no kind of negotiation happening on the pricing of the aircraft now.

All right. Thank you and all the best.

Thank you very much. In the interest of time, we will be able to take one last question. We take the last question from Jinesh Joshi from PL Capital please go ahead.

Yes, I just have one bookkeeping question. Can you highlight what are the benefits of having a finance lease versus having an operating lease because if I look at our total finance lease count that has increased to about 69 from 31 in the base quarter and if I am right in finance lease the depreciation and interest cost is higher in the initial period which is also hurting our profitability to a certain extent. So, is there any specific advantage that we get from having the finance lease versus operating lease?

Jinesh, I will probably answer in short, but you can follow this up with the I R team. But the benefit of a finance lease is that you have an option to buy out the aircraft at the end of the lease term. In an operating lease you are basically returning an asset . You already know what the situation of the supply chain is across the globe related to aircrafts; everyone would love to possess an aircraft. So, in that regard as we look towards and from our standpoint we are looking at building an airline which is going to have ownership of the assets so that's why we drove that ship from largely doing operating leases for a large part of our existence of 16, 17, 18 years we are shifting now that we will start owning aircrafts and the finance lease approach is the first step towards that, but you can always get in touch with the IR team, they will take you through the accounting. You are right, there are some trade -offs, but the biggest benefit is going to be ownership and that's where our MRO strategy also comes in because once you start owning these aircrafts you will also have your own MROs to maintain these aircrafts. So, it's kind of an integrated approach that we are talking about.

Got that, and I know we have spoken about this a lot in today's call, but I just want to get some better understanding of the ASK guidance of mid to high single digit for 2Q. So, even if I agree with 5% growth, I get an ASK of about 40,000 odd which is a decline on sequential basis. Even a high digit number of about 8% presents an ASK of approximately 41,000 odd which again is a decline on a sequential basis so while you have mentioned that 2Q is always softer than 1Q , historically I mean even if I look at FY25 or even FY24 our 2Q ASK number has not been lower than 1Q. So, in that context how to read this guidance . I know that for the full year we are not changing our guidance, but does it mean that in 2Q we are expecting some significant different demand or anything specific which you want to highlight given how the trend is in FY26 versus the earlier years?

Again, if you look at Q1 because you are comparing from a Q1 standpoint like we said we had damp leases also operating in Q1 because it's a peak we anticipated this to be a peak quarter in that regard. So, as a result you deploy capacity to serve the passengers . You know that Q2 is going to be a soft quarter , there is no point deploying a lot of capacity during this particular quarter and that's the judicial planning that we talked about. We are not deploying more capacity it's going to be a softer quarter . Having said that the point Pieter also made Q3, Q4 is going to be a stronger kind of a quarter we anticipate that and that's where we will deploy our capacity and bring in capacity. It could be in all forms, it could be in the form of new deliveries that are coming in which are now scheduled so that they are timed in a manner where they are being received in a peak period , ready for the peak period that is coming in the second half , it could be in terms of additional damp leases that we try to bring in. So, all put together if you wrap this, we are still committed to an early double-digit capacity growth for the full year . So, we have already done 16% capacity growth in this particular this sizable it's much more than anyone else that is, any other airline that is putting in so we are balancing this out in terms of manage the downside especially of a softer quarter. The total year guidance is still holding true; we will be growing early double digits.

Sure. Thank you so much. Thank you.

Thank you very much. We will take that as the last question . I would now like to hand the conference over to Mr. Pieter Elbers for closing comments.

Thank you so much. Ladies and gentlemen, thank you so much for joining us in this call . The June quarter was marked by a series of external impactful events, geopolitical headwinds, tragic safety event in the industry and airport and airspace closures . With these events we still saw a strong growth of around 12% in number of passengers for IndiGo - double the industry growth of 5% to 6% and a very resilient quarter despite industry headwinds and it brought us Rs. 2,200 crores of profit and 11% of margin . Basis the stabilization of trends in the second quarter , we remain very confident of a strong rebound and robust growth in the third and the fourth quarter. The steps we have recently announced demonstrate our conviction in the long-term growth story of Indian aviation. Ladies and gentlemen, once again thank you for joining and looking forward to talking to you next quarter and for now thank you. Thank you.

Thank you very much . On behalf of IndiGo that concludes this conference . Thank you for joining us ladies and gentlemen, you may now disconnect your lines.

This transcript has been edited for readability and is not a verbatim record of the call