The operator of IndiGo airlines is projected to achieve a consolidated net profit of Rs 1,769 crore, a significant improvement from a loss of Rs 1,064 crore a year ago. Sequentially, the net profit is estimated to increase by 23%.
Consolidated revenue is forecasted to grow by 22% year-on-year (YoY) and 11% sequentially to Rs 15,895 crore, according to the average of estimates provided by four brokerages.
The country’s largest carrier is scheduled to announce its quarterly earnings on Wednesday.
Here are the analysts’ earnings expectations from the airline operator:
Kotak Institutional Equities
We anticipate a 40% YoY and 16% QoQ increase in passenger count, primarily driven by higher ASK (available seat kilometres) and higher load factor at 9%.
We project a 5% QoQ increase in yields while reducing the support from other operating income (payment for grounded planes).
Available Seat Kilometres measure an airline’s carrying capacity to generate revenue, and it is calculated by multiplying the available seats on any given aircraft by the number of kilometres flown on a given flight.
Motilal Oswal Securities
Anticipate RPK (revenue passenger kilometre) at 28.2 billion (+29% YoY), PLF at 89.5% (up from 79.6% in 1QFY23), and ASK of 31.5 billion (up 14% YoY).
Average fare prices saw a 7% increase for bookings made 1 month in advance, while 15-day advance bookings experienced a 15% increase.
We will monitor the outlook on new aircraft deliveries from Airbus, expansion to new tier-II and tier-III routes, and the addition of newer international destinations.
The most significant factor to watch will be the sustainability of earnings in FY24, with the demand remaining strong but airfares also being on the higher side.
Nuvama Institutional Equities
Expect EBITDAR to grow 4x YoY to Rs 36 billion, driven by strong passenger traffic growth and higher yield due to limited available capacity (a large number of fleet grounded due to supply chain issues).
PLFs or passenger load factor are expected to increase by 700 bps to 87%. Fuel CASK is projected to decline by 30% to 1.71, due to easing crude oil prices.
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