InterGlobe Aviation Ltd. share price target

Improved vaccination drive and decline in infections led to higher passenger load factor. Replacement of old aircraft with fuel efficient fleet is at an accelerated pace, which is expected to be completed by FY24, will bring down operating cost. Passenger traffic growth to pick-up at higher pace starting from FY23...

INDIGO reported a beat on our estimates primarily driven by higher-thanestimated yield (at INR4.4), with RPK being 7% above our estimates. ASK was only 5% lower to pre-COVID levels (of 3QFY20). The Board has appointed Mr. Rahul Bhatia as the Managing Director of the company for five years. Management highlighted that the 3QFY22 capacity reached 88% of preCOVID level with the same being 97% during Dec'21. International capacity...

We interacted with IndiGo wherein they articulated their long term plan of responsibly maximizing unit revenues with sustained focus on reducing unit costs. Post pandemic, IndiGo continues to pursue & develop multiple revenue streams in the form of 1) fortifying domestic network aided by regional expansion (Fleet of 30+ ATR) 2) widening international network with...

Improved vaccination drive, decline in infections and relaxation of capacity cap to 85% from 65% led to higher passenger load factor. We expect passenger traffic growth to pick-up at higher pace given lower risk of Covid infections, acceleration in vaccination, festive season and recovery in tourism & corporate travel. Replacement of old aircrafts with 15% more fuel efficient fleets is expected to accelerate further, will lead to lower operating cost. We remain positive on the stock in the long term, given expansion of capacities, penetration into Tier 2-3 cities, focus on route optimization and likely market share gains post Covid era....

We tone down IndiGo's FY22 loss by 9.4% while increase FY23/FY24 earnings by 6.4%/ 15.1% given 1) Swift recovery post 2nd Covid wave 2) permission to operate 100% domestic capacity by MoCA 3) strong yield environment across markets and 4) more air bubble arrangements aiding international operations IndiGo's 2Q losses narrowed sequentially as industry witnessed a swift recovery post 2nd Covid wave aided by 1) rising consumer confidence with...

IndiGo's Q4FY21 RASK came in at Rs 3.3, EBITDAR at Rs 7.3bn was hit by rising fuel costs and the company suffered a Rs 11.6bn net loss

27% QoQ, led by recovery in passenger growth. Profitability was impacted by higher fuel cost, depreciation, lease rentals, & lower other income. Q1FY22 profitability is likely to be impacted by Covid second wave given sharp drop in passenger growth in April & May. However, we expect passenger traffic to pick-up gradually starting from Q2FY22 & expect revenue growth to normalize in H2FY22 led by acceleration in vaccination and as impact of Covid second wave subsides. Faster replacement of old aircrafts with 15% more fuel efficient fleets will improve profitability in the medium term....

INDIGO reported an in line ASK (19.2b), PLF (70%), RPK (13.5b), and yield (INR3.7), while miss to our estimates was led by higher fuel cost. Air passenger demand touched a record high in Feb'21 after the lifting of COVID-related restrictions, although the second wave impacted demand in May'21. Cash burn rose to INR190m in 4Q (from INR150m in 3QFY21). Cash burn is expected to be higher in 1QFY22 as daily passenger demand falls to ~80,000 passengers from the highs of ~300,000 at the end of Feb'21. INDIGO expects Feb'21 demand to return by the end of 3QFY22....