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Have poor results and high fuel prices clipped IndiGo’s wings?

InterGlobe Aviation stock is down 24% following the exit of CEO Aditya Ghosh and a dismal Q4

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Published 3 years ago on May 21, 2018 1 minute Read

Madhukar Ladha, analyst, HDFC Securities

We are not positive in the short-term owing to high crude prices and are concerned about IndiGo’s yields which are down 5.5% even as SpiceJet managed a growth of 4% (y-o-y). Revenue was also adversely impacted by the yield. This has come in an environment where high crude prices are hurting profitability. The current low yields are unsustainable and we expect margins to remain under pressure until competitive intensity eases or crude p

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