IndiGo stock falls over 6 pc on A320neo concerns

Shares of InterGlobe Aviation, parent firm of IndiGo, fell over 6 per cent on Thursday after the airline said the A320neo issue will impact the future capacity of the firm.

The stock fell 6.05 per cent to close at Rs 1,320 on the BSE. In late afternoon trading session, it hit a low of Rs 1,316.55, down 6.30 per cent over previous close.

On the NSE, the stock saw a decline of 6.06 per cent to settle at Rs 1,320.55. Intra-day, it lost as much as 6.29 per cent to Rs 1,317.25.

The fall in stock price led to company's market capitalisation erode by over Rs 3,200 crore to Rs 50,782.39 crore.

With DGCA ordering IndiGo to replace all A320neo aircraft with unmodified Pratt and Whitney (PW) engines by January 31, the airline on Wednesday designated this matter as one of the "revenue headwinds" of 2019-20, and said it is "likely to have an impact on future capacity".

Moreover, an IndiGo A320 neo plane flying to Bengaluru on Thursday experienced high engine vibrations mid-air and returned to Mumbai airport, according to a senior official.

In the wake of persisting P&W engine problems, the Directorate General of Civil Aviation (DGCA) has already issued various directions to IndiGo.