Indigo: Post-Covid-19 Recovery Hits An Air Pocket, Says Motilal Oswal  

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Motilal Oswal Report

The recent spike in Covid-19 cases in India weighs heavily on the aviation sector, with flyers confidence tanking, leading to further delays in the recovery of demand.

Daily passenger demand dropped by approximately 13% to ~246,600 passengers in the last week of March 2021 (versus the last week of February 2021 – when the peak was recorded), resulting in no month-on-month improvement in traffic (still down ~37% to pre-Covid-19 levels).

In April 2021, demand further fell by ~5% from the last week’s average of March-21 to ~233,000 passengers per day.

As per our airfare tracker, yields in March-21 increased by 2-5% month-on-month, but down 13- 14% QoQ in Q4 FY21.

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Motilal Oswal Indigo Company Update.pdf

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