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IndiGo first airline stock to cross market capitalisation of Rs 1 trn-mark

The carrier had earlier this month placed an order for 500 A320 family aircraft, which will be delivered between 2030 and 2035. It is the world's largest single-tranche aircraft order

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BS Reporter

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The market capitalisation of InterGlobe Aviation, which operates the country’s largest airline IndiGo, topped the Rs. 1-trillion mark on Wednesday. InterGlobe is the first domestic airline company to achieve this milestone. Shares of the company recorded an all-time high of Rs. 2,634 in intra-day trade. The stock has rallied 55 per cent in the past one year. 

InterGlobe has been able to cement its number one position amid the grounding of Go First. Analysts have increased the company’s operating margin forecasts on back of improvement in yields and passenger load factor. IndiGo expanded its fleet from a little over 100 aircraft in 2016 to more than 300 now, according to data compiled from its investor presentations. The airline plans to double its fleet size by 2030.
 
The carrier had earlier this month placed an order for 500 A320 family aircraft, which will be delivered between 2030 and 2035. It is the world’s largest single tranche aircraft order.
 
IndiGo is India’s largest airline. It carried 61.4 per cent domestic traffic in May, as per the data of the DGCA. Air India, which is at number two, carried 9.4 per cent domestic traffic in May.
 
Aviation consultancy firm CAPA India said on Twitter that IndiGo’s market cap crossing Rs. 1 trillion is an exceptional achievement that should be celebrated by the entire industry. “The carrier has not only delivered high-quality service to consumers, but it is the only airline in India that has consistently delivered value to shareholders,” it added. 

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First Published: Jun 28 2023 | 10:59 PM IST

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