Yatra is starting to the see a recovery in domestic travel in India, as daily cases of COVID-19 decrease and a vaccine is rolled out.
For the three months ending December 31, 2020, the online travel agency saw adjusted revenue increase to $8 million, up 60% on the previous quarter but down 62% year-over-year.
Air ticketing adjusted revenue came in at $6 million for the quarter, up 69% on the previous quarter and down 58% year-over-year.
Hotels and packages increased 141% on the previous quarter to $1.5 million, a 49% decrease.
Total gross booking value was $79 million compared with $210 million in the same period in 2019.
The company made a loss of $3 million compared with a loss of $4 million in the previous quarter.
During an earnings call with analysts, Dhruv Shringi, co-founder and CEO, says: "We finished 2020 on a strong note as our adjusted revenue increased 61% sequentially from the prior quarter, a clear indication that travel in India is well on its way to recovery.
"Although this is coming off a small base, hotel bookings were particularly strong with room nights growing over 400% sequentially.”
He adds that the domestic aviation market was a 56% of 2019 levels in passenger traffic in December while capacity is back to 80% of pre-pandemic levels.
Recovery in international aviation is slower.
Yatra has also been making progress in its corporate travel business with 10 new contracts signed in the third quarter of 2021 and the pipeline of potential customers is also growing.
Shringi also touched on the legal proceedings against Ebix which follow Yatra’s decision to cancel the merger deal in June, saying at the time that “Ebix’s conduct breached material terms of the agreements and frustrated Yatra’s ability to close the transaction.”
In September, Yatra filed an amended complaint expanding its claim against certain banks of Ebix as well as “claims alleged against Ebix to include a claim for fraud.”
A hearing is slated for March 22, 2021.
Shringi says that Yatra has enough liquidity to return to profitability, with $34 million at the end of Q3 2021 and debit of $110,000.
“When we come out of this pandemic, we believe we should be on a significantly better revenue growth trajectory and will leverage our improved operational efficiency to drive higher profitability and cash flow. I want to thank all our shareholders who stood by Yatra through these trying times. I'm hopeful and, honestly, believe it is only a matter of time before your patience and understanding is rewarded.”