Rising fuel costs could put IndiGo's yields under further pressure

The company could, however, increase its market share due to supply constraints

Rising crude oil prices, slowing passenger traffic growth, and falling yields have affected the country’s largest airline, InterGlobe Aviation (IndiGo). 

Some of these concerns were reflected in the stock’s performance on Friday, when it fell over 3 per cent in trade, even as the benchmark Sensex was down less than 1 per cent. 

Crude oil prices, which hit a 14-month high and are up 80 per cent since November 2020, are the key headwind for the stock and the sector. Fuel accounted for 39 per cent of IndiGo’s overall costs in FY20 and any sharp rise will impact its ability to increase