IndiGo’s Market Capitalisation Surpasses Southwest Airlines (Image Source: iStockphoto)
IndiGo Airlines, operated by Interglobe Aviation, soared to become the world’s third most valuable airline, surpassing Southwest Airlines in market capitalisation. The company’s stock surged by 5 per cent to close at Rs 3,807 on the Bombay Stock Exchange (BSE) on Wednesday. The 52 week high and low of the share is Rs 3,815.10 and Rs 1,865.70 respectively.
With a market value of Rs 1762 crore, IndiGo Airlines has showcased resilience and growth in the domestic aviation sector despite adversities. Recent reports highlight its robust operational performance, marked by increased passenger traffic and load factors, indicating a strong demand for air travel.
Jal Irani of Nuvama elaborated that IndiGo anticipates its international segment’s share to rise to 30 per cent by FY25, up from the current 27 per cent, with an expanded codeshare network encompassing 49 destinations globally.
The report also mentioned IndiGo’s dominance in the domestic market, commanding 60 per cent market share, and its significant 10 per cent share in the international market, trailing Air India’s 26 per cent share.
Despite short-term supply chain constraints impacting demand, IndiGo foresees double-digit growth in passenger traffic and capacity for FY25, despite over 70 grounded aircraft. Expansion efforts in the international segment are expected to contribute to 30 per cent of Available Seat Kilometers flown (ASKM) by FY25.
IndiGo boasts one of the lowest Cost of Available Seat Kilometers (CASK) globally, excluding fuel and forex, standing at USD 3.13. Its extensive network and the duopoly-like structure of the industry are poised to bolster profitability.
The stock has doubled investor wealth over the past year, signaling promising upside potential. Trendlyne data reveals that out of 21 analysts, 18 recommend buying the stock while three suggest holding positions.
