Key Points
ET Intelligence Group: Intense competition is expected to make it difficult for InterGlobe Aviation, the owner of IndiGo, to gain market share in the medium term...
Between April and September 2023, the market share of IndiGo increased to 63.4% from 57.5%..
Historical data show that an airline gains market share or improves margins amid weak competition..
Apart from expanded market share, its operating margin before depreciation and amortisation (Ebitda margin) improved to 31.2% in the June 2023 quarter from 20.9% in the March 2023 quarter despite buoyant crude oil prices at the time..
Given these factors, analysts estimate that InterGlobe Aviation may not be able to gain incremental market share in the coming months..
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