IndiGo briefly becomes world's most valuable airline by market cap

IndiGo is the only Indian carrier among world's top 10 airlines, runs 15,768 flights weekly

Don't want to miss the best from Business Standard?

IndiGo, India’s largest airline, flirted with global supremacy on Wednesday as it briefly overtook US-based Delta Air Lines to become the world’s most valuable airline by market capitalisation, according to Bloomberg data.

 

Riding high on a rally, IndiGo’s share price soared to a peak of Rs 5,265 during the day. At around 2.30 pm, the airline claimed the top global spot with a market capitalisation of $23.24 billion — nudging past Delta’s $23.18 billion. The lead was short-lived and by market close IndiGo’s valuation slipped to $23.16 billion, just a notch below Delta’s, the data showed. IndiGo is the world’s second most valuable airline by market capitalisation.

 

It’s a notable achievement for an airline that started commercial operations only in August 2006. Delta has been flying since 1929.

 

Just six years ago, Delta’s market value was $36.67 billion, while IndiGo’s was $7.72 billion.

 

IndiGo operates 15,768 flights per week — up 12.7 per cent compared to April last year, according to aviation analytics firm Cirium.

 

Delta operates 35,144 flights weekly, 6.6 per cent higher than the corresponding month last year.

 

As of the end of 2024, IndiGo had a fleet of 437 aircraft. With massive orders placed with Airbus, the airline has locked in deliveries through 2035. It is scheduled to receive 925 new aircraft from the European plane manufacturer over the next decade.

 

To meet the growing demand in the country's air travel market, Indian carriers have placed multiple aircraft orders since 2023. In February 2023, Tata-run Air India group placed an order for 470 planes: 250 with Airbus, and 220 with Boeing. In June 2023, IndiGo made the world's largest aircraft order by signing a deal for 500 narrow body A320neo family planes from Airbus.

 

In January 2024, new airline Akasa Air placed an order for 150 B737 Max aircraft with Boeing. Three months later, IndiGo placed its first-ever order for wide-body aircraft, securing 30 A350 planes from Airbus, marking a significant step towards expanding its international operations and network. In October 2024, Air India placed an order for 85 more planes with Airbus.

 

Air India group and IndiGo hold more than 90 per cent of the domestic passenger market right now.

 

India is expected to become the centre of world aviation in 15 years due to capacity and professionally run airlines, said Edward Delahaye, head of customer accounts for India and South Asia at Airbus, in February 2024.

 

India has about 800 commercial aircraft in its skies and the majority of them are from European plane-maker Airbus. "If you add domestic traffic growth, the GDP [gross domestic product] growth in the country, recapturing a lot of international traffic from other international airports, and establishing India as a connecting place in the world, I think the prospects of Indian aviation are very bright, well beyond what we are seeing today," Delahaye said.