Indian airline IndiGo's parent company Interglobe Aviation is all set to release its quarterly results today and the company is likely to post another weak set of numbers.Here are the key expectations from its Q2 numbers:
- Aviation companies have been reporting extremely weak numbers for the last few quarters and the trend is expected to continue this quarter as well.
- Kotak estimates that the revenue growth would be strong because passenger traffic growth has been healthy at 30 percent but the operational mess is expected to continue.
- EBITDA loss of Rs 495 crore is expected and overall loss of Rs 466 crore is expected due to several reasons. One- the aviation turbine fuel (ATF) prices have gone up 5 percent on a sequential basis. Two- an increase in the dollar denominated cost will hit their margins.
- The passenger growth continues to be quite strong, however, there was a 4 percent decrease in the average ticket price due to which, the revenue growth will not be as high as the passenger traffic growth.
- In the last quarter, the yields fell about 5.4 percent year-on-year (Y-o-Y) to Rs 3.62 per kilometre. There is an expectation that yields could fall further in this quarter.