Strong passenger traffic, improving yields support IndiGo's flight

However, rising crude oil prices could offset top line growth and impact margins

The stock of the country’s largest airline, IndiGo, was up 7 per cent over the last couple of trading sessions on expectations that strong passenger volumes, improving yields and no restrictions on sale of stake by promoters would boost prospects and investor sentiment.

Analysts at Credit Suisse who have an outperform rating on InterGlobe Aviation (IndiGo) believe that the company could turn profitable in the December quarter on the back of strong yields and traffic improvement with load factors for the sector at near pre-covid levels.

For the week ending December 4, passenger traffic at 357,000 which is 89 per