Stockrabit · Analysts
Questions across 7 calls

Pieter Elbers

Firm not listed in source transcripts

InterGlobe Aviation Limited

InterGlobe Aviation Limited CC-Jan26.pdf · 2026-01-22
At this point in time, all our focus is to make sure that we have a smooth transition into the month of February, bearing in mind the capacity curtailment, which is there, which all in all is leading to that capacity guidance, which was just shared by Gaur av, for a growth of 10% year -over-year in this fourth quarter. So, bearing in mind this curtailment of capacity. And again, all the focus of the teams and the operation is really to make sure that we have that smooth transition. At this point in time, we have not concluded yet our planning for the summer. So, I guess giving any number in terms of projected growth numbers or impact numbers would be very premature.
So at this point in time, we have few damp leases in operation already. So, we do have a number of damp leases supporting the network of IndiGo already, and that was decided and implemented already prior to the operational disruption. Some of the challenges we have in terms of AOGs are global supply chain challenges. And with that, there's not an abundance of lease opportunities all across the world. So, I think we are good where we are now in the wet leases we have. And these are also not leases you can induct kind of overnight. It requires a proper preparation and paperwork and all the sort of preparation to have planes here. So, we focus now on making sure that we have a good matching of the pilot availability and the program being operated, including some additional focus and preparation to make sure that the FDTL in Feb will be implemented smoothly.
InterGlobe Aviation Limited CC-Nov25.pdf · 2025-11-04
If I may add there, I think the quarter-over-quarter capacity development is not the most important. We just take a step back and look to the strategy, which we have launched 3 years ago, we would become for largely domestic operator into an international or, if you wish, global operator. And the things we have been doing ever since, we have kind of doubled our international footprint from a little over 20 destinations 3 years back to 43 today, and we continue to build on that. The growth is even larger when we look to the number of routes, and the number of routes today is exceeding the number of hundreds. So, we're kind of building on these numbers. And we'll continue to do that quarter -over-quarter. We've given an earlier guidance of having in the range of 30% of our ASKs in terms of international. We have achieved that. And with the wide bodies coming in, that percentage will grow to 40%. So, you'll continue to see these variations, and I think it's good when we speak about Q2, optimize capacity. We see that on the domestic side, we had basically a flattish situation and basically all the growth was only in international side. And domestic was a mixture of the Delhi airport closure and some capacity reallocation, which we have done. So, the opportunity , I mean, more strategically rather than quarter -over-quarter comparison, is there's an enormous growth market and with that growth market, IndiGo continues to grow well. I think IndiGo is very well positioned with enormous order book we're having. That's one. Two, the international side, where the capacity share of Indian operators was significantly lower than foreign operators. We're rapidly catching up. And we see now that on the international side we are one of the leading airlines rather than a small player in that field going forward. In the near future, the XLR will help us to make the next step that's arriving in the next quarter, and we'll go into the operation in Q4. And clearly, the further growth of the wide body. So again, quarter-over-quarter, we see this dimension, but it's part of a holistic and larger strategy where you see the dimension moving into building that network. And our domestic network will remain the backbone of the IndiGo operation connecting the nation, having this impressive 94 destination I have shared that earlier, 90% of the Indian population lives within 100 kilometres of an IndiGo served airport, that in itself, I think, is a very strong statement and a very strong asset we're having. And with that, that international connectivity is building, not only for Indian customers, but increasingly also for foreign customers who choose India as a transfer point for their journey. And we see that for example, with the flights coming from both Manchester and Amsterdam, connecting in Mumbai to other parts, either domestic or international.
If you look at the yields per ASK, by definition, the longer that you fly, the lower the yield per ASK. So that, I guess, is an observation. But the same would go for the cost per ASK, the further you fly the lower the cost per ASK. So, I think that, you cannot just draw the conclusion that flying international is having a lower yield because also you have a lower unit cost. That's one. Second observation here is that given the geographical position of India, we're having the opportunity to expand to East, West, North, now clearly with China being added. We have a new opportunity of opening new revenue markets. So, the international network also allows us to participate in markets, which have stronger seasonality and stronger variations. I think some of the things we have been doing is moderate our domestic capacity and reallocated international and also, we could do the other way around. So increasingly, this international footprint allows us to put capacity where at that point in time, market and demand is and as such, optimize the revenues. Another thing, and perhaps that will come in a later question, but let me preemptively address it. The internationalization helps us also by addressing some of the natural currency hedges we're going to do a more internationalization that clearly brings i n again here in unit revenue, not only unit revenue in rupees, but also in dollars or euros or British pounds. So, we get all this foreign currency coming in, which clearly helps us to provide a more natural hedge. So again, here, it's a combination of all the different factors as, I would say, holistic ingredients of our strategy.
InterGlobe Aviation Limited CC-Jun25.pdf · 2025-07-30
No, every year you will find Q2 being a soft quarter. Like in Europe, every year, Q1 of the calendar year is a soft quarter. So, in India, Q2 is every year a soft quarter. So, despite the fact that it's a soft quarter, we are moderating our capacity to a single digit number. Single digit, by the way, still allows us to grow. We also have still room in the load factor to further grow. We have adjusted our capacity and made sure that, for example, we have reduced some of our damp leases and that should help us also even from a financial perspective. So, I would say it's a very normal trend. Every year you find Q2 not to be a great quarter. It was included, by the way, in our initial planning. Otherwise, we would have also revised our guidance for the entire year, which we haven't.
We still expect our XLR to come in this year. There is no change in that. That was perhaps, if you would have asked that question two years back, there was a different day. But this one now is very consistent. We still expect that plane to come in this year itself. And thereafter, we continue to build our network in the calendar year following, which is the calendar year of '26. We are not having yet given any capacity guidance for FY 27, and neither are we going to do today. But what we have demonstrated, I think, over the years is that we have the ability to find alternative aircraft if needed so. And clearly, the planes which I alluded to earlier, the planes which we have taken from Norse are really helping us to step up our international footprint on the longer haul as well.
InterGlobe Aviation Limited CC-Mar25.pdf · 2025-05-21
I think if I may, you should make a difference between the low cost and low -cost operations or a low-cost basis, if you wish. And I think IndiGo prides itself, and we remain committed to that to be an operator with a very low-cost basis that has not meant domestically that we are having a product which is not from high quality. On the contrary, courteous, hassle -free, on-time performance and affordable fares. So that has been the basis of success for IndiGo. What we have done, though, with the start of the operation into Europe, we will adjust our product to what is required for Europe. So, we will have meals all across the aircraft as part of the overall price proposition on the flights to Amsterdam and Manchester. And we have our premium product, IndiGoStretch being available on those flights as well. That doesn't mean any change in the domestic and regional proposition. And actually, it's encouraging to see in other parts of the world where they basically go back to exactly the proposition IndiGo is already having on this domestic and regional network. So, I think IndiGo is on the way to becoming a global aviation giant, and this is precisely part of that trajectory. And it may be good to add that even for the XLR, we have announced a dual class configuration as well.
Take a step back and look through the network of IndiGo. And here, really, the strength of a strongly diversified network operating from a country with a large geographical scope is really helping us. So, to put things in perspective, IndiGo operates 131 destinations. Due to the closure of the Pakistani airspace, we have suspended 2 - Almaty and Tashkent. So out of the 131, 2 have been suspended. Then if we look to the other flights, it basically impacts around 19 routes and a total of around 30 flights. 34, I think, is the precise number, but it depends a bit on wins and directions and all. So, we have 2,200 daily flights. And there, we have a total of 34 being affected. Within the range of 20 to 30 minutes of additional flying time, which, of course, there's an impact financially when it comes to bringing additional fuel, but if you look to the overall scheme of things at IndiGo , and the size of the operation to other geographies, the impact for us is relatively limited and these flights is a low single-digit number as part of the total of our flights being affected.
InterGlobe Aviation Limited CC-Dec24.pdf · 2025-01-24
I think we have been very consistent for the last 2 -3 years in delivering up to our capacity guidance and what Gaurav was alluding to and you see that in the results. So, far, we are living up to our capacity guidance for this year. This quarter, which we published today, has an ASK growth of 12%, which is very much in the early double -digit numbers as we announced . The fourth quarter as Gaurav alluded to, we will have a very significant increase mostly because last year had a significant decline and with that increase of the 20% which we have published or just shared with you for Q4, we confirm basically our guidance for FY25. For FY26, that is part of the discussion we have actually right now . Again, as we have seen in the recovery of the demands, and Gaurav shared that with you the first half of the year was somewhat muted for probably a whole host of external reasons. If you see this last quarter, it has been very solid and we have seen that in load factors, we have 2 consecutive months with a load factor higher than 90% is very telling. We touch ed the record of 10 million customers in a single month in the month of November and I think we were 20,000 short of touching 11 million customers in the month of December . So, that brought us to 31 million customers in thi s very last quarter. So, clearly we are very much encouraged by these numbers, and we are right now in the process of setting up our plans for next year.
I am not an economist leave alone specialist on the Indian consumer trends. So, let me put those two disclaimers upfront. But what we see, even in some other industries, actually quite positive rebounds in towards the latter half of the year. So, what we do see that the under penetration of air travel in India provides just an incredible reservoir of opportunities to be tapped. So, there may be some variations in yields quarter -over-quarter, there may be some variations of pricing quarter-over-quarter, but the fact that the percentage of Indians using air travel compared to the rest of the world is still relatively low, gives us a lot of confidence on these growth numbers and in the Q2, thanks to the heat wave, thanks to the election, so we had seen some sort of external effects which we haven't seen in this quarter. So, we are sort of back to the growth levels and year-over-year, the month of December was 8%, I think November was 12%, so we see actually very strong quarter. To your further detailing , we have seen it all across the board and the strength of IndiGo really is, we have a network very strong in the metros and clearly very strong metro to metro position. But we have also very much a broad based network which some 450 routes domestic and soon 90 destinations domestic. We serve first time flyers quite a lot of them, but we also serve the corporate markets. So, all these segments, actually we have seen a very healthy demand on that side. On the international side , we have done a lot of the expansions. They have basically welcomed very much and very good by our custome rs. We have now touched 28% of all our ASKs are now on the international side. You remember we had that discussed a couple of times and that is going to be sort of a leading part of our growth and also that is there. So, the Indian traveler wants to explore , I think Indi Go provides a fantastic opportunity to have those new flights , new routes and I think some of the new ones which we have introduced Langkawi, Penang have been welcomed very positive in the market itself.
InterGlobe Aviation Limited CC-Sep24.pdf · 2024-10-25
No. If we look at the growth numbers, I think in the introduction, we have also mentioned it, there is a bit of a normalization. Last year, of course, was characterized by very high growth numbers. And this year, we see some normalization on a quarterly basis of these growth numbers, especially in the somewhat traditionally weaker seasons. And obviously, Q2 is a somewhat weaker season. I think what’s important for us is that despite this very high number of AOGs and we have taken all these mitigation measures, that has enabled us to still have a significant capacity growth and with that to keep serving the market. So, without the AOGs obviously, our financial situation would have been better, but we would not have been able to serve the market and accommodate the growth. So, for us, the sort of long-term view on how the Indian market is growing is unchanged. But clearly, there is somewhat traditionally weaker season, the growth was somewhat moderated. I think also there were a couple of very specific elements in this quarter, which was the sort of the post-election travels, which were there. There were some specific weather elements also affecting it. So, there were a couple of specific items. But overa ll, I would say it was pretty much in line with our expectations, and that’s exactly why we put out the capacity projection for the entire year of the early double digits, and we had a single-digit growth predicted and actually executed in the 2nd Quarter. So, the fact that we have a stable load factor in this quarter is very much in line with what we anticipated. And in fact, where we were foreseeing prior to the quarter itself.
Well, I think that would be a bit too quick jumping into conclusions basis on what’s happening in the quarter. I think what we have seen taking a step back is that the international demand is strong and actually still stronger or even stronger, I should rather say, than the domestic demand. We are exploring new markets, new destinations. I think for example, Jaffna is a great example of a new market. All our growth in Central Asia. So, we keep growing these international markets. And with some of the new announcements, again, we will start to explore new international markets. So, I would not link it to a specific load factor in a specific quarter to take any view on that. The Indian traveller, as we can see, is still very keen to travel international. We see a couple of international markets where visa restrictions are being either lifted or eased, an enormous surge of demand. We expect that to continue. We will reach our 3 0% share of international ASKs very soon. We continue to add new destinations and open up new markets in that. So, we remain very optimistic and bullish on that. Yes, we do see some sort of quarter -over-quarter changes in the load factor and some sort of increase of some of the international carriers coming also on these routes again. India has been viewed, I think, over the past 12 to 24 months as the world’s fast est-growing market, and obviously, other airlines or other airlines from other countries are looking to reallocate some of their capacities to this market. I think this will only further let the market grow and develop the Indian international market.
InterGlobe Aviation Limited CC-Sep23.pdf · 2023-11-03
Maybe let me add here. I'd like to underline that looking at the gr oundings and the potential future groundings is one angle to look at it. The other angle to look at it is the mitigating measures which we have been taken. As Gaurav just alluded in his explanation on the numbers, we have taken actually a whole range of measures which is making us comfortable in living up to our capacity guidance. And you may recall at the beginning of this year when the number of groundings were still significantly less as compared to the numbers we have today, we gave the capacity guidance in the north of the mid -teens. If you see where we are today, in fact, we are comfortably reaching those numbers till date and even for the third quarter, we're comfortable in reaching those numbers. So, we have taken a whole range of mitigating measures , and as Gaurav mentioned earlier, actually we started already very early with that with the damp leases of the wide body aircraft, the extension of leases, the reintroduction of some of the CEOs and the new damp leases which we have now recently inducted. So, I think there are really two angles to this. One of course is the situation and the supply chain challenges the ones we have today and even the one going forward. But for us, it's very important that we make sure that the market in India which today i s one of the most vibrant markets in the world when it comes to passenger growth, we have been able to live up actually to our capacity guidance and be able to serve that. And if you look to our passenger number actually just in this second quarter alone, where we do have a passenger number of 26.3 million, which is significantly above last year, that basically speaks to our ambition to provide that capacity. And we continue to do so looking forward and the fact that we have announced even in the last coupl e of days, another four new domestic destinations is underpinning that ambition and also the fact that we are confident on our mitigating measures to make sure that we can live up to this year's capacity guidance.
I think I've mentioned before at IndiGo, of course the number of groundings is something which has a lot of focus on us. But compared to some others, we're actually in a position whereby we do have a very significant order book and of course the overall number of the order book is still under 970 planes to be delivered, probably in the decade to come. And, if we see that the deliveries every quarter it is a significant number, and also for next year we have a very sizable number of almost every week we got one new plane coming in, and that's for the entire y ear going forward. So, if you look at that, for us, it's important that Airbus reconfirms basically their ability to deliver. If they can speed up a couple of airplanes, we will be of course very pleased with that. But the number of planes coming in one per week is already a very significant number. I don't think there's any airline in the world which for such an extended timeframe will have so many planes coming in on a weekly basis.