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Nasdaq-listed Indian traveltech company MakeMyTrip’s net loss narrowed 59% year-on-year (YoY) to $10 Mn in the April-June quarter of the financial year 2022-23 (FY23) on the back of an increase in demand for travel during the summer holiday season and pent-up demand for leisure travel in the post-pandemic recovery phase.

However, on a quarter-on-quarter (QoQ) basis, MakeMyTrip’s net loss more than doubled from $4.1 Mn reported in the March quarter of FY22.

The company also saw a 334.7% YoY surge in its total revenue to $142.7 Mn in Q1 FY23 from $32.8 Mn reported in the corresponding quarter last year. On a QoQ basis, its revenue jumped 61%.

The revenue from hotels and packages business contributed about 59% to the total revenue. Revenue of the segment increased to $84 Mn in Q1 FY23 from $11.4 Mn in Q1 FY22.

The next biggest contributor to the revenue was MakeMyTrip’s air ticketing business, which generated a revenue of $30.9 Mn in Q1, up 110% from $14.7 Mn reported in the corresponding quarter of previous year.

“While consumer sentiment for travel remains extremely positive, high aviation fuel prices leading to increased air fares continue to impact the recovery of the travel market compared with pre-pandemic levels, particularly with respect to international travel,” said Rajesh Magow, group CEO of MakeMyTrip.

MakeMyTrip also reported gross bookings of $1,612.5 Mn in Q1 FY23 versus $286.7 Mn in Q1 FY22. On a QoQ basis, it rose over 59% from $1,012.3 Mn in the last quarter of FY22.

Due to a rise in annual wage and higher share-based compensation costs, the company’s employee expenses in Q1 FY23 increased by about 21% to $32 Mn from $26.5 Mn in the year-ago quarter.

On the other hand, MakeMyTrip also spent $24.8 Mn in marketing and sales promotion during the June quarter, almost a 5X increase from $5.1 Mn in Q1 FY22.

The increase was due to the events and brand-building initiatives following a strong recovery in domestic travel demand after the impact of the pandemic diminished, MakeMyTrip said in a statement.

Its other operating expenses also surged 179.3% to $31.5 Mn in Q1 FY23 as against $11.3 Mn in the corresponding quarter of previous year, primarily driven by an increase of $16.5 Mn in payment gateway charges, website hosting charges and outsourcing fees.

Despite the increase in travel demand, the company once again stated that the extent of the effects of the pandemic on its business, results of operations, cash flows and growth prospects remain uncertain.

MakeMyTrip shares are up about 3% at $28.7 in its early trading on Nasdaq.