IndiGo Q2 results preview: All eyes on impact of Delhi Airport incident, fuel costs, and expansion outlook

InterGlobe Aviation-owned IndiGo is set to announce its Q2 results for the financial year 2024-25 on Friday, October 25, 2024. While the airline has seen its stock rally 29.5 per cent on the BSE so far this year, analysts are divided on how the September quarter earnings will play out. Several factors are at play, including the Delhi Airport roof collapse case and rising fuel costs.

Passenger load factor and key insights

IndiGo’s passenger load factor (PLF) for Q2 is expected to be around 83.5 per cent, slightly lower than its usual figures. The Delhi Airport roof collapse incident is likely to have affected passenger volumes, especially during peak travel times, contributing to the anticipated dip in load factor.

Fuel costs and operational challenges

Fuel prices have been marginally higher on a year-on-year basis, which may pressure the airline’s margins. 

Outlook on P&W engine issues and competition

Another major focus will be the outlook for IndiGo's Pratt & Whitney (P&W) engine-fitted aircraft. With operational issues tied to P&W engines affecting several airlines globally, any updates on IndiGo's handling of these problems will be crucial.

IndiGo is also expected to provide an update on the growing competition in the budget airline space and its plans for international expansion. These factors are important as the airline looks to maintain its leading position in the market.

Market performance

IndiGo’s share price has rallied 29.5 per cent on the BSE during the current financial year, outperforming the benchmark BSE Sensex, which rose by 10 per cent. Investors will be watching the results closely to gauge whether the airline can sustain this momentum, especially in light of rising competition and operational hurdles.