Core Insights - Yatra Online, Inc. reported robust financial and operational performance for the three months ended December 31, 2025, exceeding initial full-year growth guidance despite challenges in the domestic aviation sector and geopolitical issues affecting international travel [1][2] Financial Performance - Revenue for the quarter was INR 2,576.9 million (USD 28.7 million), reflecting a year-over-year growth of 9.6% [1] - Adjusted EBITDA was INR 99.7 million (USD 1.1 million), a decrease of 17.9% year-over-year [1] - The company reported a loss from operations of INR 120.2 million (USD 1.3 million), compared to a profit of INR 14.8 million (USD 0.2 million) in the same quarter of the previous year [1] - Loss for the period was INR 129.3 million (USD 1.4 million), compared to a profit of INR 39.8 million (USD 0.4 million) in the prior year [1] Operational Highlights - Total Gross Bookings reached INR 21,761.9 million (USD 242.2 million), marking a 20.9% increase year-over-year [1] - The Corporate Travel segment onboarded 40 new corporate clients, increasing annual billing potential by INR 2,234 million (USD 24.9 million) [1] - Adjusted Margin from Air Ticketing was INR 1,195.8 million (USD 13.3 million), an increase of 39.4% year-over-year [1] - Adjusted Margin from Hotels and Packages was INR 502.1 million (USD 5.6 million), reflecting a 14.6% increase year-over-year [1] Strategic Initiatives - The integration of Globe Travels has progressed well, providing supplier synergies and technology enhancements [1] - The company is focused on restructuring efforts to unlock shareholder value, with timelines subject to regulatory complexities [1] - Future strategies include scaling high-margin segments and enhancing technology capabilities to drive sustainable long-term value [1]

Government Shutdown Impact on Air Travel - The government shutdown is beginning to cause disruptions to air travel [1] - The system has shown resilience with only a slight increase in delays and no spike in cancellations, resembling bad weather impact [2] - Air traffic control (ATC) and TSA employees going without pay could lead to increased absenteeism and potential ground stops for safety [3][4] - A prolonged shutdown extending into November could materially impact GDP [5] - Air travel is considered the lifeblood of the economy, and disruptions can have significant consequences [4][5][9][10] Airline Performance and Trends - Delta and United show broadly similar results with robust outlooks for the fourth quarter [6] - Both airlines are well-positioned to benefit from strong demand in corporate, premium, and international travel [6] - International travel shows an extended seasonality with more Americans traveling to Europe in October and around the holidays [6] - Full-service airlines are better equipped to cater to diverse customer needs through revenue segmentation and basic economy offerings [7] Potential Resolution Catalyst - Air travel disruptions might serve as a catalyst for resolving the government shutdown [4][8][9] - The aviation infrastructure's importance to the economy makes it a potential political football [9]