the Q2 is soft for Indigo and for every airline player in the Industry. The thing is Q2 FY24 was v very high base bcoz last year all cylinders fired together, spice jet was facing huge issues + Jet airways had to shut down operations. Hence, Q2 FY23 went well and base for FY24 was set high.
Additionally, if we see the results of this quarter, the lease liabilities had increased by 3x I guess. As they did damp leasing of places at a high cost. Plus ASK increased by good chuck. They increased the capacities in this quarter and hence cost was upfront. Plus in airlines business, cost is always upfront and operating leverage play comes later on. Additionally, wider economy didnt do well in Q2, hence Indigo suffered. Going forward, FY23 base id v high, plus company is in investment phase, hence costs will hit the income statement as ASK will increase and occupancy will increase slowly. Though v good long term play, but pain in short term.
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