IndiGo Q3 Review - Concerns Over Demand Growth, Yield Surface: Motilal Oswal
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Motilal Oswal Report
Interglobe Aviation Ltd. reported in-line available seat kilometers (15.3 billion), passenger load factor (72%), and revenue passenger kilometers (11 billion), while yield came in lower than estimate at Rs 3.7, resulting in lower-than-expected revenue.
An increase in crude oil prices, along with decline in yield, and the slowing of domestic passenger growth going forward (compared with over the last seven months) would impact companies’ profitability.
Passenger demand and yield were stronger over October-November 2020, but crashed in December 2020 on reports of new Covid-19 cases.
Additional deployments of aircraft by competitors have also led to pressure on yields
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