Shares in InterGlobe Aviation Ltd surged 10% after the company, which operates the largest over-the-counter airline IndiGo, said it plans to raise fares to return to profitability after recording a loss in the third quarter. The stock hit a high of Rs 1,808.50 on the BSE, up 10% from its previous close. Shares of BSE were up 5 per cent at Rs 1,737 at 10 am.

InterGlobe CEO Ronojoy Dutta said profitability is the company’s top priority. The company reported a consolidated net loss of Rs 1,681.80 crore, reflecting the third wave of Covid-19, a record rise in jet fuel prices and a weaker rupee.

Revenue rose 29% year-on-year to Rs 8,020.75 crore. Operating margins contracted sharply to 2.1% in the quarter from 10.4% a year ago. A Bloomberg poll estimated a quarterly net loss of Rs 978.3 crore on revenue of Rs 8,000.30 crore for the quarter.

As of March 31, IndiGo‘s total cash balance stood at Rs 18,227.5 crore, while the airline’s total debt, including capitalised operating lease liabilities, stood at Rs 36,877.8 crore. The company expects capacity to grow by about 150% in the first quarter of fiscal 2023 and by about 55-60% for the full fiscal year.