InterGlobe Aviation shares rally for 4th day running; hit 52-week high

InterGlobe Aviation shares rally for 4th day running; hit 52-week high

Shares of InterGlobe Aviation, the parent of IndiGo, jumped over 4.50 per cent on Wednesday, taking their rally to the fourth day running.

The rally in the stock of IndiGo's parent InterGlobe Aviation comes at a time when air travel demand is on the rise and there are also capacity constraints due to Vistara flight cancellations and other factors.

IndiGo commands 60.1 per cent market share as on February.

The stock climbed 4.54 per cent to settle at Rs 3,796.55 on the BSE. During the day, it advanced 5 per cent to Rs 3,815.10 -- its 52-week high.

At the NSE, it jumped 4.43 per cent to Rs 3,795.30.

In the past four days, the stock has zoomed 9 per cent, adding Rs 12,175.7 crore to its market valuation.

Travellers will have to shell out more for domestic flights this summer season, with airfares surging 20-25 per cent amid Vistara flight cancellations and strong air travel demand, according to industry experts.

Faced with pilot woes, Vistara has cut 25-30 flights daily, or 10 per cent of its total capacity.

Jagannarayan Padmanabhan, Senior Director and Global Head, Transport, Mobility, and Logistics Consulting at CRISIL Market Intelligence and Analytics, said the impact of higher airfares on travellers is expected to be substantial.

''As we enter the busy season, we anticipate a 5-7 per cent increase in airfare, with pricing pressure particularly notable on trunk routes like Delhi-Mumbai and Mumbai-Bengaluru. Given that much of the upcoming travel will be for personal reasons and with family, the impact is expected to be substantial.

''Consequently, a considerable number of travellers might choose rail travel for shorter distances instead,'' he noted.

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