IndiGo becomes most valuable airline in world with market cap surpassing ₹2 lakh crore

Low-cost airline IndiGo made history this week by momentarily surpassing global giants such as Delta Air Lines and Ryanair to become the world's most-valuable airline by market capitalisation.

The stock has seen a strong rally this year, gaining 13% so far, which has pushed its market capitalisation past the ₹2 lakh crore (around $23.3 billion) mark. IndiGo stock ended nearly 1% higher on Wednesday, defying the weak broader market trend. 

The stock's latest performance is particularly notable against the backdrop of the Nifty 50’s nearly 6% decline year-to-date, driven by concerns over global trade war, earnings slowdown and pricey valuations.

IndiGo holds a dominant position in India’s domestic aviation sector, capturing more than 60% of the market. The airline is also focusing heavily on expanding its international presence. In a recent update to analysts, the company shared its goal for international operations to account for 40% of its available seat kilometers (ASK) by FY30, up from an estimated 28% in FY25.

To support this growth, IndiGo plans to add approximately 50 new aircraft in FY26 to its existing fleet of 439 planes, though 50 of those are currently grounded. The management has also projected a strong, early double-digit growth in ASK for the upcoming fiscal year.

IndiGo Q3 results highlights

IndiGo's parent company, InterGlobe Aviation Ltd, posted a net profit of ₹2,449 crore for Q3 FY25, marking an 18 per cent decline from ₹2,998 crore in the same quarter last year, even though air travel demand remained strong.

The higher profit in the year-ago period was largely driven by the festive season, which took place during the October-December quarter of 2023, unlike in 2024.

InterGlobe Aviation reported a 14 per cent year-on-year increase in revenue for the third quarter of the fiscal year, reaching ₹22,111 crore compared to ₹19,452 crore in the same quarter last year.

This growth was supported by a 12 per cent rise in available seat kilometres (ASK) and a 13.5 per cent increase in revenue passenger kilometres (RPK). Additionally, the load factor saw an improvement of 1.2 percentage points, reaching 86.9 per cent.

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