Engine issues cloud IndiGo growth outlook; price war may hit revenues

A320ceo aircraft accounted for 53 per cent of the company's capacities as of September quarter

The InterGlobe Aviation (IndiGo) stock shed over 6 per cent in trade on Thursday after the company cut its capacity guidance for the current financial year. The company has guided for a capacity growth of 22-23 per cent for 2019-20, compared to 25 per cent target it had indicated after the July-September quarter results. The company has also guided for capacity increase of 15-20 per cent for the March quarter of 2020.

The lower capacity growth guidance is on account of engine issues for the Airbus 320neo aircraft. Over the past two months, the Director General of Civil Aviation (DGCA)