IndiGo Briefly Becomes World's Most Valuable Airline Amid Stock Surge

IndiGo, India's largest budget carrier, briefly became the world's most valuable airline, surpassing Delta Airlines and Ryanair Holdings in market capitalisation. The airline’s market cap stood at around Rs 2 lakh crore ($23.3 billion) as of Tuesday’s close, driven by a strong stock rally in recent months.

Despite a broader market slump, with the Nifty index down 6% this year, IndiGo's shares have surged 13%, reflecting its financial resilience and dominant 62% market share in the Indian aviation sector. The airline has rebounded from post-Covid financial challenges, including a net loss of Rs 987 crore in Q2FY25.

Analysts expect IndiGo to post a strong Q4 profit of Rs 2,300 crore, backed by a favorable mix of fares, crude prices, and passenger load factor (PLF). Projections indicate a pre-tax profit (ex-forex) of Rs 8,600 crore for FY25.

ICICI Securities remains bullish on IndiGo, citing its cost competitiveness, robust aircraft order book, and strong balance sheet. The airline anticipates an early double-digit increase in Available Seat Kilometers (ASK) in FY26. Currently operating 439 aircraft, including 50 grounded planes, IndiGo expects to add another 50 new planes in the next fiscal year.

Looking ahead, the airline is focusing on international expansion, aiming for 40% of its ASK to come from overseas operations by FY30, up from 28% in FY25. IndiGo’s management is implementing strategic measures to boost global brand awareness and enhance international travel services to strengthen its foothold in the global aviation market.

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