Even as InterGlobe Aviation Ltd (IndiGo) saw its net loss widening, improvement in revenue cheered the Street. Infact, market participants believe that strong demand could help the aviation company to raise their fares and trigger a turnaround in operations.“In the past two months, airfares have risenly massively, indicating the underlying strength in demand,” said Purvesh Shelatkar, head of institutional broking, Monarch Networth Capital.Shelatkar believes that strong demand is more than enough to cover the rising fuel prices. Airlines have the potential to increase fares considering the robust demand seen at this point, he added.Seconding the view was Reliance Securities that said rising yield and pricing discipline would support turnaround despite higher fuel prices. The brokerage firm expects fuel prices to normalise by second half of 2023.“We believe that INDIGO’s strong cash position would help in sustaining its market share along with pricing power, going forward, which would drive its overall profitability,” said Reliance Securities which believes the IndiGo is the best play to capitalise in the fast growing Indian aviation sector.Prashant Pitti, Co-founder & Director, EaseMyTrip.com also confirmed that bookings for both the hotels and flights have picked up really well. “All the flights, all the hotels are going chockablock and we are pretty excited for this particular quarter and for the coming quarter,” he said.Despite the recovery in demand in April-May 2022, Prabhudas Lilladher is of the view that profitability will remain impacted in the next quarter, due to higher fuel prices and rupee depreciation.However, the domestic brokerage firm noted that IndiGo remains optimistic on long term demand opportunities from a medium to long term perspective.Shares of IndiGo jumped as much as 10 percent on Thursday as the Street cheered higher revenue on the back of a rebound in traffic and yield improvement. Yield is the average amount of revenue received per paying passenger flown one mile.In April 2022, the month that saw domestic air traffic take off by 90.5 percent over the previous month, IndiGo managed to attract customers who left peers like Air India and Air Asia, thereby seeing a sharp increase in its market share.As per a report by ICICI Securities, IndiGo’s growing market dominance was first visible in March 2022 when its share went up by almost 4 percentage points to 54.8 percent.Further, positive views from brokerage firms also aided the upmove in the stock. At 9:22 am, shares of the airline company were trading 4.3 percent higher at Rs 1,715 on the BSE.Here is the company's earnings performance on a year-on-year (YoY) basis:Quarter ended March 2022Quarter ended March 2021Revenue from Operations (In Rs crore)8,020.706,222.90Net Loss (in Rs crore)1,681.801,147.16The airline company reported a net loss in the fourth quarter of FY22, primarily hit by high fuel costs while total revenue rose 29 percent YoY because of improvement in yield and a strong rebound in traffic in the latter half of the January-March quarter.“A yield improvement of 19.2 percent and a RASK (Revenue per Available Seat Kilometre) improvement of 21.7 percent drove improved revenue performance compared to the same period last year,” the IndiGo said in the earnings press release.Reacting to the quarterly results, JP Morgan said that Q4 was a miss but the yield trend post Omicron has surprised positively. The brokerage firm has upgraded its rating on the aviation company's stock to 'overweight' and has also hiked its target price to Rs 2,000 from Rs 1,825 earlier.Further, the brokerage firm has raised its EBITDA estimates for IndiGo by 20 percent for FY23 and by 10 percent for FY24.Meanwhile, Credit Suisse that has an 'outperform' recommendation on the stock, said that strong yields and sustained traffic bode well while lower supplementary rentals suggest lower maintenance costs.IndiGo’s CEO, Ronojoy Dutta said, “This quarter has been difficult because of the demand destruction caused by the Omicron virus in the first half. Although traffic rebounded and demand was robust during the latter half of the quarter, we were challenged by high fuel costs and a weakening rupee”.“We believe IndiGo is best positioned to maximise revenue in a recovering market. As we work to return the airline to profitability, we are focused on maintaining our cost leadership position and continuing to build the most efficient network in the region,” he added.Catch up on all LIVE stock market updates here.