Jefferies remains bullish on IndiGo as its preferred pick in the airline sector, citing a strong growth outlook driven by the accelerated pace of new aircraft deliveries. The brokerage noted that while IndiGo has picked up the pace of deliveries in recent months, Air India (AI) has seen a slowdown, and this trend could further limit supply growth for the industry in 2025. Jefferies highlighted that both IndiGo and Air India are increasing their focus on international routes, which is supporting domestic loads and yields.
For IndiGo, the brokerage sees multiple drivers for growth in 2024, including uptick in industry occupancy, normalization of the cost curve, and the scaling up of new digital initiatives. Jefferies expects these factors to position IndiGo well for market leadership in the coming year and drive consistent operational improvements. The brokerage reiterated its ‘Buy’ call on IndiGo, underscoring its strong fundamentals and growth potential in the aviation space.
