- Indigo reported revenue growth of 26% YoY supported by ancilliary revenues which grew 29% YoY.
- ASK grew 19% YoY as Indigo increased its market share in cargo to 41% (27% in 3QFY19).
- Replacement of CEO aircrafts with NEO will drive EBITDA growth given NEO’s better fuel efficiency and lower maintenance.
- Indigo can benefit from spurt in demand for low fare air travel and traction in demand for lucrative short haul international routes.
- Softening yields, slower capacity addition and engine overhaul costs can affect company’s earnings.
- Indigo is expected to continue to outperform the market and continue to generate healthy free cash flow and steady returns over the medium term.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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