IndiGo rises as higher fares, cost controls offset fuel-cost concerns (updated)

Interglobe Aviation

30/10/2026 04:12

Adds details, context and analyst comments from paragraph 3 onwards
Oct 30 (Reuters) - Shares of IndiGo INGL.NS rose on Friday as investors looked past a fuel-hit quarterly loss and focused on the airline's efforts to protect profitability through fare hikes, capacity discipline and network optimisation.
Stock was up roughly 3% at 4,810 rupees, as of 09:37 a.m. IST, its highest level in two weeks. Benchmark Nifty 50 .NSEI was up 0.22%.
IndiGo, India's largest airline, posted a third consecutive quarterly loss, though the loss narrowed from a year earlier as revenue growth and higher fares partly offset rising costs. Fuel expenses, which made up nearly 38% of total costs, surged with global oil prices.
Elevated fuel costs continued to weigh on IndiGo's earnings, but analysts said tight industry capacity, resilient fares and the carrier's cost-management initiatives could help limit the impact, keeping the longer-term profitability outlook intact.
Jefferies said the quarterly performance was largely on expected lines, highlighting resilient pricing and management's guidance for low single-digit capacity growth in the current quarter.
While Ambit Capital said the earnings upgrade cycle has yet to take off, it pointed to favourable supply-demand dynamics and IndiGo's efforts to optimise its fleet and network, including a gradual reduction in expensive damp-leased wide-body aircraft.
Emkay Global flagged fuel costs as the key monitorable but said fare hikes, premiumisation initiatives and network adjustments should help support earnings as industry capacity remains constrained.
Average rating of 25 analysts on IndiGo is at "buy," with a median price target of 5,700 rupees, according to data compiled by LSEG.
The company's stock has shed 5% so far this year, compared with a 12% drop in Nifty 50 .NSEI

 (Reporting by Kashish Tandon in Bengaluru; Editing by Sherry Jacob-Phillips)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))