IndiGo becomes world’s 3rd largest airline

Shares of InterGlobe Aviation Limited reached a new milestone on April 10th, climbing 5 percent to Rs 3,801 each during afternoon trading, marking the fourth consecutive day of gains.

This surge propelled the carrier to become the world’s third-largest airline by market capitalization. Over the past month, a remarkable 22 percent rally has propelled the stock of InterGlobe Aviation, operator of IndiGo airline in India, to a total value exceeding Rs 1,46,000 crore ($17.5 billion), according to Bloomberg data. Notably, in December 2023, it surpassed United Airlines to claim the sixth spot among the world’s largest airlines. Delta Air and Ryanair Holdings lead the pack with market caps of $30.4 billion and $26.5 billion, respectively.

Late March saw several brokerages issuing bullish forecasts for the low-cost carrier following its analysts’ meet. UBS, reiterating its “buy” call on the stock, emphasized IndiGo’s robust growth prospects within the Indian aviation industry, bolstered by share gains in international travel, efficient cost structure, and operational excellence. Similarly, ICICI Securities highlighted favorable demand-supply dynamics and the company’s strong position across various metrics including balance sheet strength, market share, management capabilities, and order book.

The brokerage projected that IndiGo, having successfully met its FY24 targets across all fronts, is now eyeing early double-digit growth in capacity and passengers for FY25, setting a price target of Rs 4,009.

As of 3:04 pm, the stock was trading at Rs 3,798, up 4.5 percent from the previous close on the NSE. Over the past year, the share price has surged by an impressive 99.7 percent.