The stock of InterGlobe Aviation has gained nearly 40 per cent in the past six months. Over half of the gains have come in just three months on the back of rising market share amid grounding of Jet Airways due to lack of funds.
The stock may continue to attract investors considering the possibility of higher yield given the expanding fleet size and lower crude oil prices.
Indigo’s capacity is expected to increase 30 per cent and 22 per cent in the current and next fiscals, respectively, compared with a 28 per cent rise in FY19. In the June 2019 quarter, it added 16 Airbus aircraft. Its fleet size is expected to increase to 278 in FY20 compared with 218 in the previous fiscal.
In addition, the company has announced plans to fly to China and Saudi Arabia as new international destinations. Though revenue per km is usually lower on foreign routes, it is compensated by lower fuel cost per km.
20/06/19 Ashutosh R Shyam/Rajesh Naidu/Economic Times
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The stock may continue to attract investors considering the possibility of higher yield given the expanding fleet size and lower crude oil prices.
Indigo’s capacity is expected to increase 30 per cent and 22 per cent in the current and next fiscals, respectively, compared with a 28 per cent rise in FY19. In the June 2019 quarter, it added 16 Airbus aircraft. Its fleet size is expected to increase to 278 in FY20 compared with 218 in the previous fiscal.
In addition, the company has announced plans to fly to China and Saudi Arabia as new international destinations. Though revenue per km is usually lower on foreign routes, it is compensated by lower fuel cost per km.
20/06/19 Ashutosh R Shyam/Rajesh Naidu/Economic Times
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