Samco Securities
June 13, 2025 at 06:35 AM
IndiGo May Be Flying Into Turbulence as Iran-Israel Tensions Fuel a Cost Storm✈️🌩️
With Israel-Iran tensions rising, key air routes over the Middle East are becoming risk zones.⚠️This is shrinking viable airspace, forcing airlines like IndiGo to take longer routes directly impacting fuel consumption⛽
Add to that the recent breakout in crude oil prices, and we have a double whammy: rising operational costs just when margins were under pressure😨
Technically, while IndiGo has been in a long-term uptrend, the seasonality chart paints a cautionary picture June and July have historically been weak months, with more downside closes📉
All factors combined geopolitical risks, fuel price pressure, and seasonal weakness suggest IndiGo may be heading for some turbulence ahead. Traders and investors might consider this a time for caution, not celebration🚨
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