Interglobe Aviation (IndiGo) is included in some handful of stocks that have not affected the market. The main reason for this is IndiGo’s great performance. It has become the second largest airline company in the world from the market captivity. Now only the US Delta is smaller than the airline. Indigo’s market capitalization has crossed Rs 2 lakh crore (trillion). The stock market continues to decline since the end of September. However, during this time, IndiGo’s stock has been constantly climbing. In the last six months, IndiGo’s stock has risen 12 per cent, while in the last one year it has given 47 per cent returns.
Runway ready for fast growth of Indigol
Conditions look favorable for IndiGo. After Kovid, there has been a strong rise in the airlines industry. Experts say that the growth of this industry will remain fast. Interglobe Aviation will get the most benefit from this. The number of people doing air travel (in the country and out of the country) in the next five years is expected to increase rapidly. The government is trying to create a brilliant infrastructure of the airport in the country. Connectivity between Tier 2 cities is increasing. Middle class rising income has brought the price of flight tickets to their access.
Investors are not selling stocks even amid decline
Corporate travel has seen a surge. Executives from the company’s functioning are moving from one city to another. Bernstein’s report states that by 2027 India will become the fifth largest outbound tourism country in the world. The passenger load factor has crossed 80 percent. This is under pressure to increase the services on the airlines. Because of this, investors’ interest remains in the shares of Interglobe Aviation. Investors are not selling this stock even amidst the decline in markets.
The highest share in the market will be benefited
Indigo is India’s largest airline company. Its market share in domestic air travel is two-thirds. In the last few quarters, airlines have raised ticket prices. This has increased the capacity of companies to earn profit. IndiGo seems ready to take advantage of this opportunity. The reason for this is that India’s second largest airlines Air India have only 27 percent market share. Other airlines companies are very small in size.
By 2030, the company will provide services to 20 crore passengers
Indigo looks ready to fly high. The management of the company is also excited about the possibilities of growth. The company has ordered new aircraft. Their delivery will be done by 2030. This will increase the company’s aircraft to reach 600. The company will then be able to offer air services to 200 million passengers annually, which is doubled compared to now. The company has planned to add 14 new cities to its network in 2025. The company is also increasing the number of employees to provide better services to customers.