IndiGo hits a lifetime high on expectations of recovery, market share gains
This would offset the recovery in volumes from the lows in May
The Nifty PSU bank index ended as the top laggard on the NSE, down 4.7 per cent, after surging nearly 6 per cent each over the past two days
On Thursday, the Ministry of Civil Aviation hiked the airfare price band on flights with 90 to 120 minutes of duration to Rs 3,900, up from Rs 3,500 earlier
The price hike has attracted the attention of market participants, now the stock needs to cross significant resistance to move ahead.
On Thursday, Ministry of Civil Aviation revised air fare price band on flights with 90 to 120 minutes of duration to Rs 3,900, up from Rs 3,500 earlier
During the three months to December, Brent crude prices declined 28 per cent YoY while domestic aviation turbine fuel (ATF) prices plunged 31 per cent YoY
Rise in costs, lower realisations could keep profitability under pressure
The stock of SpiceJet, for instance, has soared 80 per cent in the past month, from a level of Rs 49.6 apiece on the BSE (on closing basis) to Rs 89.3 on December 4
In the past six months, IndiGo has outperformed the Sensex index and has rallied 78.4 per cent on the BSE till Wednesday. In comparison, the S&P BSE Sensex is up 42.8 per cent, BSE data show
Comfort of cheaper turbine fuel evaporates as crude prices hit highest level since March
All that happened in the markets today
Shares of firms in the sectors have outperformed Sensex in November
IndiGo's market share crosses 60 per cent; traffic for the sector still a fifth of pre-Covid levels
Indian airlines resumed domestic operations from May 25 after being grounded for two months
Despite the Covid-19 pandemic, analysts say the Indian aviation sector holds promise from a long-term perspective and that the macro-economic factors remain conducive
With domestic air travel resuming only from May 25th, analysts expect Q1 performance to be adversely impacted due to truncated size of operations & travel restrictions by state governments
According to Elara Capital, IndiGo and SpiceJet could report a cumulative net loss of Rs 3,350 crore in Q4FY20, as against a profit of Rs 570 crore in Q3FY20 and Rs 650 crore in Q4FY19.
Despite the limited number of flights and price restrictions, analysts believe that the fares are yield accretive for airlines
Given the nationwide lockdown and weak travel sentiment, global aviation consultancy CAPA revised downwards estimates for India's air traffic for the for FY21 from 80 to 90 million to 55-70 million