1、 Disclosures&Disclaimer This report must be read with the disclosures and the analyst certifications in the Disclosure appendix,and with the Disclaimer,which forms part of it.Issuer of report:HSBC Securities and Capital Markets(India)Private Limited View HSBC Global Research at:https:/ Thank you for

2、 your supportSee resultsHSBC in Extel Survey 2025 FY26 started with some flight cancellations related to Pakistan-India tensions and the Air India crash;a recovery may take time However,we dont see any change to structural strength and positive earnings momentum,and maintain our bullish thesis Maint

3、ain ratings,TPs adjusted;Indigo(Buy)may benefit from Air Indias challenges;SJET(Reduce)to face more headwinds Q1FY26 preview some temporary headwinds:Seasonally,Q1 is strong for the travel and hospitality sector in India,but trading so far this financial year faced some headwinds from geopolitical t

4、ensions between India and Pakistan causing 30 airports to close for more than 10 days and the closure of Pakistans airspace.Geopolitical tensions between Israel and Iran also had a minor impact on demand,but,more importantly,the closure of airspace in the Middle East resulted in an increase flight t

5、ime on some long-haul routes,and Air Indias plane crash caused some softness in demand after H2 June.Long-term thesis well intact:While the trading softness in Q1 could also extend to Q2,we expect a strong recovery in H2FY26e,well supported by strong macro dynamics and lower interest rates.In the me

6、dium term,we expect demand growth to remain strong.While CAPA forecasts demand to grow at a 15%CAGR for FY25-30e,we think it could grow by low double digits.On the other hand,we expect an 11-13%capacity growth CAGR for FY25-30e,meaning fares could continue to hold.Yet,yields could be adjusted due to