IndiGo in Focus: Three Key Positives

Key Positives 1. Air Traffic Continues to Grow • June passenger traffic trends remain positive on a YoY basis • Healthy demand environment supports higher load factors and revenue growth 2. Air India Capacity Cut • Air India has reduced capacity by around 25% in June • Lower industry capacity can help IndiGo capture additional market share • Creates opportunities on affected routes and strengthens pricing power 3. IndiGo Well Positioned to Add Capacity • Strong fleet expansion plans and execution capabilities • Ability to deploy additional aircraft and capitalize on market demand • Further reinforces its leadership position in the domestic aviation market Additional Tailwind • Falling crude oil prices are positive for airlines as aviation turbine fuel (ATF) is a major operating expense • Lower fuel costs can support margins if sustained Why It Matters IndiGo could benefit simultaneously from stronger demand, reduced competitive capacity, and lower fuel costs—a combination that is generally favorable for airline profitability. Learning Outcome For airline companies, the most important earnings drivers are passenger demand, industry capacity, and fuel prices. When all three move favorably, profitability can improve significantly. $INDIGO