SpiceJet and Jet Airways (India) also gained in the range of 2% to 3%, following slide in crude prices.
Lower crude oil prices benefit aviation companies as jet fuel constitutes over 40% of an airline's operating costs.
Thus far in the calendar year 2017, SpiceJet (up 121%), Jet Airways (up 58%) and InterGlobe Aviation (46%) have outperformed the Sensex, which gain 17%.
Meanwhile, according to JP Morgan, Goods and Service Tax (GST) rate of 5% on airline tickets is 100bps lower than the previous service tax, which is a positive, given industry fears of a potential 12% tax slab earlier. Business class tickets are to be taxed at 12%.
Indigo improved its market share to 41.4% in April with domestic traffic increasing 23% Y/Y. Domestic load factor was 87% in April. The airline plans to increase capacity by 25% in FY18; and is thus likely to gain additional market share, added report.