The company has also appointed Aloke Singh, former Managing Director and Chief Executive Officer of Air India Express, as its new Chief Strategy Officer.
Brokerage firm Jefferies has maintained a ‘Buy’ rating on IndiGo, with a price target of ₹6,140 per share, implying a potential upside of 48% from current levels.The brokerage said that the airline’s summer schedule provides better visibility on capacity growth. IndiGo has scheduled 13,950 departures, which is 2% lower year-on-year compared to last year’s reported schedule.
However, this implies a 6-7% increase over actual domestic departures of around 13,100 last year.ALSO READ | JPMorgan cuts targets for IT stocks, says FY27 guidance critical amid AI concerns
Jefferies expects available seat kilometre (ASK) growth of 10-11% for financial year 2027 (FY27), which remains below the airline’s historical compound annual growth rate (CAGR) of 13-15%.
The moderated growth trajectory could lead to lower aircraft utilisation, potentially putting pressure on unit costs, particularly cost per available seat kilometre (CASK), excluding fuel and foreign exchange impact.
Key near-term risks, according to the brokerage, include the ongoing West Asia conflict and any resulting spike in jet fuel prices.
The brokerage also said that fuel surcharges may offer only limited relief at current spot fuel prices and may not fully offset the cost pressures.
