BUZZ-Street View: Analysts see unit costs impacting India's IndiGo in Q4

Reuters01-23
BUZZ-Street View: Analysts see unit costs impacting India's IndiGo in Q4

** India's largest airline IndiGo INGL.NS warned that its per‑passenger costs for the full year would be higher and took a $63 million hit in the third quarter

** Quarterly profit plunged 75% due to a one-time charge related to disruptions that led to thousands of flight cancellations in early December

** Shares fall as much as 3.8% to 4,722.50 rupees

Q4 OUTLOOK BLEAK, UNIT COSTS DETERIORATING ON CAPACITY CUTS

** Jefferies ("Buy", TP: 6,140 rupees) says post December disruption, co rapidly normalised operations but expects March quarter to be weak as average cost of flying an aircraft seat expected to rise

** J.P. Morgan ("Neutral", TP: 4,625 rupees) says INGL's Q3 results better than feared as cost impact of disruptions and rupee depreciation is likely to hit in the next quarter

** Emkay ("Buy", TP: 6,300 rupees) foresees gradual improvement in operations and growth, though cuts FY26 EBITDA by 5%, maintains FY27/28 estimates

** Nuvama ("Hold", TP:4,842 rupees) expects recurring impact on Cost per Available Seat Kilometer (CASK) from implementation

of new labor code and higher pilot hiring to comply with flight duty time limitations norms

(Reporting by Urvi Dugar in Bengaluru)

((UrviManoj.Dugar@thomsonreuters.com;))

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