Operating Parameters Show Improving Trends With Domestic Daily Fliers Breaching Four Lakh: ICICI Securities
Dec-22 average daily number of passenger stands at 409,000 versus 390,000 in Nov-22.
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Domestic daily fliers have crossed 400,000 as per trends in December and are now largely in line with levels of 416,000 seen during Dec-19/Jan-20 (pre-Covid).
Dec-22 average daily number of passenger stands at 409,000 versus 390,000 in Nov-22. Average daily departures have increased from 2,722 in Nov-22 to 2,794 in Dec-22 and number of passenger per departures have increased from 143 to 147 during the same period.
Average aviation turbine fuel price is lower by 8% QoQ in Q3 FY23. Domestic load factors are also strong and likely to be higher by 350 basis points QoQ in Q3 FY23 to 83% (estimates).
As such, we expect IndiGo to report strong profits in Q3 FY23. Cost overrun on wet leases/lease extensions akin to H2 FY20 is a risk but one can expect compensation from original equipment manufacturers.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.