InterGlobe Aviation skids on flight disruptions

InterGlobe Aviation fell 2.61% to Rs 1,268.55 at 14:27 IST on BSE, following aviation regulator's order to ground certain A320Neo aircraft due to an ongoing Pratt & Whitney engine issue.

Meanwhile, the S&P BSE Sensex was down 182.05 points, or 0.54% to 33,674.73.

On the BSE, 20,000 shares were traded in the counter so far compared with average daily volumes of 1.29 lakh shares in the past two weeks. The stock had hit a high of Rs 1,290 and a low of Rs 1,264.90 so far during the day. The stock hit a 52-week high of Rs 1,358.65 on 27 February 2018. The stock hit a 52-week low of Rs 874.65 on 15 March 2017.

Shares of InterGlobe Aviation fell as much as 3.07% in the intraday yesterday, 13 March 2018, after the media reported the Director General of Civil Aviation (DGCA) on Monday, 12 March 2018, grounded a few Airbus A320neo aircraft currently operating in the country due to the ongoing Pratt & Whitney engine issue. The stock, however, recovered in the late trade to end higher by 1.99% at Rs 1,302.60 yesterday, 13 March 2018.

InterGlobe Aviation clarified to the bourses during market hours yesterday, 13 March 2018, that it is in receipt of the communication from DGCA directing the company to ground certain A320Neo aircraft due to an ongoing Pratt & Whitney engine issue. The company is in the process of implementing the directions of the DGCA.

Upon implementation of the DGCA's directive, the company will have a total of nine A320Neo aircraft on the ground. This has resulted in cancellation of certain flights. Given that the company has multiple flights to the same destination, it has proactively tried to re-accommodate all its affected passengers on other flights. All affected passengers have been given the option to either choose another flight at no additional cost or cancel their booking and get a full refund without any cancellation charges.

Net profit of Interglobe Aviation rose 56.39% to Rs 762.03 crore on 23.89% rise in net sales to Rs 6177.88 crore in Q3 December 2017 over Q3 December 2016.

InterGlobe Aviation is the operator of low cost passenger airline IndiGo, which is India's largest passenger airline with a market share of 39.7% as of January 2018.

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