Shares of InterGlobe Aviation (parent company of IndiGo) slipped over 3% intraday on Friday as brokerages warned about possible pressure on the airline’s earnings due to rising geopolitical tensions in West Asia.! 🔹 The stock finally closed 2.28% lower at ₹4,410 per share. 🔹 Despite the previous session’s rally, the stock is down around 9.5% this week. What’s weighing on the stock? 📊 Higher Fuel Costs: Brokerage J.P. Morgan highlighted that rising crude oil prices could increase fuel expenses, putting pressure on margins. 🌍 Weak International Travel: According to UBS, the ongoing conflict between the United States and Iran could impact international air traffic, affecting the airline’s Available Seat Kilometre (ASK) — a key measure of passenger carrying capacity. 📉 Target Price Cut: UBS maintained a BUY rating but reduced the target price to ₹5,480 from ₹6,170 due to geopolitical risks. ⚠️ Flight Cancellations: IndiGo has cancelled over 500 international flights to West Asia and other destinations between Feb 28 and March 3 due to the ongoing tensions. 💰 Profit Impact: According to HSBC, if cancellations continue for 7 days, it could wipe out around ₹32 crore from IndiGo’s PBT, which is about 6% of Q4 profit before tax. 📌 Additional Risks: • Rising crude oil prices • Weakening Indian Rupee vs US Dollar • Continued geopolitical tensions

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