24 October 2018 INDIGOs ticket yield declined 10% YoY (-11% QoQ) to INR3.2, led by pricing pressure in the 15-day window (contributes ~40%) due to intense competition. increased sharply by 42% YoY in 2QFY19. Higher capacity addition in a seasonally weak quarter resulted in a poor yield. Adding to this, higher other expenses squeezed the EBITDAR margin to a six-year low of 1.8% in 2QFY19. We expect INDIGO to continue facing pricing pressure in the next few quarters to profitably deploy incremental capacity given intense competition due to industry wide capacity addition. Dismal operating performance and likely continuance of the same prompt us to cut our FY19 EPS estimate from INR35.3 to -INR22.9. We adjust our yield estimate for FY20 marginally. For 1HFY19, EPS stands at -INR16.2. For the full-year, we estimate EPS of -INR22.