Leading corporate travel services provider and online travel company, Yatra Online has reported robust financial results for the first quarter of fiscal year 2023-24. The company said it displayed remarkable growth across various key financial metrics, underscoring its resilience and strength in the travel sector.
The company recorded consolidated revenue from operations totalling INR 1,102 million, reflecting an impressive year-on-year growth of 24 per cent. In addition, Yatra‘s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reached INR 177 million, signifying a substantial 28 per cent increase compared to the previous year.
The company maintained an EBITDA margin of 16 per cent, demonstrating a noteworthy year-on-year improvement of 47 basis points. Yatra’s net profit for the quarter stood at INR 60 million, marking a 3 per cent year-on-year growth in this key financial metric. These financial highlights underscore Yatra’s strong performance in the travel sector.
Operational highlights:
Yatra achieved the strongest quarter in air travel bookings since the onset of the Covid-19 pandemic, with the highest number of air passengers booked since December 2019. This growth, up 41.5 per cent YoY, significantly outpaced the domestic air passenger industry’s growth of 14.8 per cent YoY. Yatra’s domestic passenger traffic grew by 6 per cent sequentially, which is double the pace of India’s domestic passenger traffic.
San Francisco is one of the top tourism and meeting destinations in the US and received 21.9 million visitors in 2022. Total tourism spending in 2022 also exceeded USD 7.7 billion. The tourism industry is the largest generator of outside revenue into San Francisco’s economy and supports over 53,000 jobs. In 2022, India ranked third among San Francisco’s top overseas visitor markets with 158,000 visitors.
The company reinforced its position in the corporate travel sector by acquiring 19 new corporate customer accounts. These accounts have an annual billing potential of INR 1,510 million, highlighting Yatra’s strength and leadership in corporate travel services.Revenue from the Hotels and Packages business amounted to INR 448 million, a 17.6 per cent increase compared to the previous year. This growth is attributed to the recovery in domestic travel and the addition of new distribution partners. The company introduced “Yatra Prime” in the Consumer business, featuring benefits like zero convenience fees, access to exclusive fares, and priority access to VIP customer support.
Dhruv Shringi, Whole Time Director & Chief Executive Officer, commented on the results, saying, “We started FY24 on a strong footing, demonstrating our ability to gain market share with remarkable growth in air travel bookings. We’ve fortified our leadership in the corporate travel sector with the addition of 19 new corporate customer accounts, highlighting the capabilities and leadership of our Corporate Travel SaaS platform. As we move forward, we remain optimistic and committed to leveraging these positive trends to drive further growth and success.”
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According to ICRA‘s latest report, India’s domestic air passenger traffic for September 2023 is estimated at approximately 122.7 lakh passengers, displaying a marginal decrease of about 1.3 per cent compared to August 2023 when it stood at around 124.2 lakh passengers.
Despite this slight dip, the data reveals a noteworthy year-on-year growth of approximately 19 per cent as compared to September 2022, which witnessed roughly 103 lakh passengers. Additionally, September 2023 also surpasses pre-Covid levels in September 2019 by approximately 7 per cent, when the traffic count was around 117 lakh passengers.
For the first half of FY2024, spanning from April to September 2023, the domestic air passenger traffic totaled around 753.79 lakh passengers. This represents a significant year-on-year growth of 20 per cent when compared to the same period in FY2023 (April-September 2022) when the traffic count was around 626.68 lakh passengers. Moreover, this figure is roughly 7 per cent higher than the pre-Covid levels witnessed in the corresponding period of April-September 2019, which stood at 703.93 lakh passengers.
Under this pricing structure, passengers booking IndiGo flights will incur a fuel charge, per sector, based on the sector distance. The decision comes after sharp increase in the Aviation Turbine Fuel (ATF) prices in recent months. The move is likely to prompt other airlines to follow the suit and start charging fee from passengers.
Furthermore, airline operators in September 2023 deployed a capacity that was around 10 per cent higher than the capacity deployed in September 2022. However, it is important to note that the current capacity remains slightly lower, by approximately 0.5 per cent, when compared to the pre-COVID levels of September 2019.In September 2023, it is estimated that the domestic aviation industry operated at a passenger load factor (PLF) of approximately 89 per cent. This is a significant increase compared to September 2022 when the PLF was around 82 per cent and, more interestingly, it is marginally higher than the pre-COVID PLF levels of September 2019, which stood at around 86 per cent.
Additionally, in the fiscal year 2024, Aviation Turbine Fuel (ATF) prices exhibited a sequential decline up until June 2023. Subsequently, there has been a steady increase in ATF prices, with a 5 per cent hike in October 2023. This upward trend is significant as it marks the first YoY increase in ATF prices for FY2024, with a growth of 1.3 per cent in October 2023. This increase is attributed to the rising crude oil prices observed over the past four months.
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