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What is the story about?
Shares of Interglobe Aviation Ltd., parent company of IndiGo, India's largest airline, surged as much as 9% on Wednesday, April 1, led by multiple triggers which contributed to this upmove.
This is the biggest single-day move for the stock since May 2022, which is also the top gainer on the Nifty 50 index.
The board of IndiGo on Tuesday, approved the appointment of new CEO William Walsh, who was the former CEO at British Airways. Walsh will take over the charge at the airline starting August 3.
Walsh has been the Director General of IATA since 2021.
Analysts believe that given IndiGo's ambition to be a global airline, appointing a CEO with international experience is well within this strategy.
Priorities from here might include reliability, crew issues, and balancing the low-cost model amidst the recent escalation in oil prices, as per analysts.
Besides the new CEO, earlier this morning, Indian Oil Corporation announced that the prices for Aviation Turbine Fuel (ATF) have been increased by up to 115% for all international flights. Fuel costs account for nearly 40% of all airline expenses.
Later, the company clarified that the revised ATF prices are not applicable to scheduled domestic flights.
"We would like to thank the Hon'ble Prime Minster for such a significant step for all of us. We would also like to convey our heartfelt appreciation to the Ministry of Civil Aviation and the Ministry of Petroleum and Natural Gas as this marks a meaningful way forward, enabling greater stability for airlines and allowing us to pass on the benefits through more accessible and affordable travel for our customers," IndiGo said in statement.
26 analysts have coverage on IndiGo, of which 21 of them have a "buy" rating, three have a "hold" and two have a "sell" rating on the stock. The consensus estimates of price targets implies an upside potential of 28.5% from current levels.
UBS also has a "buy" rating on IndiGo with a price target of ₹5,480. It stated in a note on March 16, that IndiGo has sufficient cushion to absorb higher crude prices, limiting earnings impact up to $83 a barrel.
Citi also has a "buy" rating on IndiGo with a price target of ₹5,100, stating that a blanket sector-wide surcharge will impact yields between 8% to 10%.
Shares of InterGlobe Aviation are trading 8.5% higher on Wednesday at ₹4,277. The stock is still down 16% so far in 2026 despite today's recovery.
(With Inputs From Vinnii Motiwala)
This is the biggest single-day move for the stock since May 2022, which is also the top gainer on the Nifty 50 index.
The board of IndiGo on Tuesday, approved the appointment of new CEO William Walsh, who was the former CEO at British Airways. Walsh will take over the charge at the airline starting August 3.
Walsh has been the Director General of IATA since 2021.
Analysts believe that given IndiGo's ambition to be a global airline, appointing a CEO with international experience is well within this strategy.
Priorities from here might include reliability, crew issues, and balancing the low-cost model amidst the recent escalation in oil prices, as per analysts.
Besides the new CEO, earlier this morning, Indian Oil Corporation announced that the prices for Aviation Turbine Fuel (ATF) have been increased by up to 115% for all international flights. Fuel costs account for nearly 40% of all airline expenses.
Later, the company clarified that the revised ATF prices are not applicable to scheduled domestic flights.
"We would like to thank the Hon'ble Prime Minster for such a significant step for all of us. We would also like to convey our heartfelt appreciation to the Ministry of Civil Aviation and the Ministry of Petroleum and Natural Gas as this marks a meaningful way forward, enabling greater stability for airlines and allowing us to pass on the benefits through more accessible and affordable travel for our customers," IndiGo said in statement.
26 analysts have coverage on IndiGo, of which 21 of them have a "buy" rating, three have a "hold" and two have a "sell" rating on the stock. The consensus estimates of price targets implies an upside potential of 28.5% from current levels.
UBS also has a "buy" rating on IndiGo with a price target of ₹5,480. It stated in a note on March 16, that IndiGo has sufficient cushion to absorb higher crude prices, limiting earnings impact up to $83 a barrel.
Citi also has a "buy" rating on IndiGo with a price target of ₹5,100, stating that a blanket sector-wide surcharge will impact yields between 8% to 10%.
Shares of InterGlobe Aviation are trading 8.5% higher on Wednesday at ₹4,277. The stock is still down 16% so far in 2026 despite today's recovery.
(With Inputs From Vinnii Motiwala)
