InterGlobe Aviation Ltd and SpiceJet Ltd are expected to post miserable financial results for the March quarter (Q4FY21). InterGlobe runs IndiGo, India’s largest airline.
The recovery in domestic passenger traffic that the sector was witnessing till February has stalled, owing to rising covid-19 cases and related curbs. Moreover, aviation turbine fuel (ATF) prices have increased sequentially. The upshot: both IndiGo and SpiceJet are expected to report losses for Q4FY21.
Prabhudas Lilladher Pvt. Ltd expects losses for the industry to widen sequentially given the dent in consumer confidence leading to lower unit revenues in an already seasonally weak quarter and 25% quarter-on-quarter rise in ATF prices.
