Demand-supply dynamics in the aviation sector are favourable at present, with the company seeing strong bookings amid capacity constraints.
Worsening the supply scenario in the peak summer season is the suspension of operations this month of peer Go First, creating additional near-term tailwinds. This would mean healthy yields, a measure of pricing. In the March quarter (Q4FY23) earnings call held last week, IndiGo’s management said it is seeing year-on-year improvement in yield in Q1FY24. Note that in Q4, IndiGo’s yields were higher year-on-year at ₹4.85, but fell by nearly 10% sequentially due to seasonality.
“According to our airfare tracker, the 30-day domestic forward prices are up by 12% quarter-on-quarter in Q1FY24 till date and the 15-day prices are up by 20% quarter-on-quarter in Q1FY24 till date," said a report by Motilal Oswal Financial Services on 19 May.
This story is from the May 22, 2023 edition of Mint Mumbai.
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This story is from the May 22, 2023 edition of Mint Mumbai.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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