IndiGo shares soar to a 52-week high on an Airbus aircraft deal

IndiGo shares soar to a 52-week high on an Airbus aircraft deal

Indigo

Through an order for thirty Firm A350-900 aircraft from Airbus, the local airline made it possible for Indigo Airlines to grow its fleet. As of April 10, the airline ranked third globally in terms of market capitalization.

Indigo Airlines overtook United Airlines in December 2023 to take the sixth spot as the world's biggest airline.

After placing an order with Airbus for 30 Firm A350-900 aircraft, Interglobe Aviation, the airline operator of IndiGo, saw a spike in share price of over 4% to a new 52-week high of Rs 3,598. This move let the aviation company to extend its network.

At the moment, IndiGo has more than 350 aircraft in its fleet. The airline created industry history in June 2023 when it ordered 500 Airbus aircraft, the biggest single aircraft purchase ever. A320NEO, A321NEO, and A321XLR are among the models covered by the order.

The business said in a regulatory filing that "the precise configuration of the aircraft will be decided at a later stage, and the deliveries are expected to start from 2027." The largest airline in the nation also said that, subject to certain restrictions, it may purchase an additional 70 Airbus A350 Family aircraft at its discretion for potential future requirements.

Reaching unprecedented heights

As of April 10, the airline ranked third globally in terms of market capitalization. It overtook United Airlines in December 2023 to take the sixth spot as the world's biggest airline. According to data, the two largest airlines are Ryanair Holdings and Delta Air, with m-caps of $26.5 billion and $30.4 billion, respectively.

Several brokerages released positive growth estimates for the low-cost airline at the end of March. For example, UBS maintained its "buy" recommendation on the company, noting the Indian aviation industry's strong growth potential in addition to increases in market share for international travel, an effective cost structure, and operational efficiency. This attitude highlights IndiGo's optimistic outlook and demonstrates confidence in the company's capacity to take advantage of good market developments and continue to deliver great results.