IndiGo Q3 Earnings Preview - Expect Strong Sequential Performance: ICICI Securities
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ICICI Securities Report
We expect Interglobe Aviation Ltd. to show an improved QoQ performance in Q3 FY22 driven by better passenger load factors and fares along with higher capacity flown offset by higher crude prices. However, rising Omicron cases pose a concern for the Q4 outlook.
Q3 FY22 yields would be a reflection of pent-up demand, in our view. We expect revenue per available seat kilometre for IndiGo to be Rs 4.12 in Q3 FY22 compared to Rs 3.7 in FY20.
We estimate loss of Rs 2 billion in Q3 FY22 for IndiGo. We expect Q3 FY22 financials to reflect the impact of higher crude oil prices, offset by higher demand. Thus, for IndiGo, we expect fuel cost per available seat kilometre to increase 11% QoQ in Q3 FY22, while revenue per available seat kilometre is expected to rise by 16% QoQ.
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