Indian airline IndiGo gains on softer oil prices

Interglobe Aviation

Tue 04:39

** Shares of IndiGo INGL.NS rise 2.6% to 5,046.20 rupees
** Gains after oil prices cool with Brent crude LCOc1 trading flat at ~$105 per barrel after dropping 7% in the previous session as talks between Iran and Qatari mediators lifted hopes for an end to the US-Israeli war with Iran
** Lower oil price are a positive for airlines such as INGL; jet fuel makes up largest expense for carriers
** INGL's fuel expenses accounted for ~38% of the total during Q2, with the airline saying fare increases were inevitable as fuel prices rise
** Avg rating of 25 analysts on stock at "buy"; median PT is 5,650 rupees - LSEG-compiled data
** YTD, stock down 0.3% vs Nifty 50's .NSEI 9.6% drop


 (Reporting by Kashish Tandon in Bengaluru)
 ((Kashish.tandon@thomsonreuters.com))