Wednesday’s surge comes on the back of the Airport Economic Regulatory Authority on Tuesday, April 8, announced a 25% reduction in parking and landing charges across major airports, with immediate effect. The reduction will be applicable to all domestic flights for three months, AERA stated. The order follows the Centre’s directive to the airport tariff regulator in view of the West Asia crisis.The announcement came just before the US and Iran agreed to ceasefire in West Asia for two weeks, which resulted in positive market sentiment and oil prices slipping nearly 15% as well in the global markets.
Earlier this month
IndiGo raised its fuel surcharges across domestic and international routes from April 2, after a sharp rise in aviation turbine fuel (ATF) prices started to bito into airline economics.Under the revised structure, domestic passengers are to pay a fuel surcharge in the ₹275 to ₹950 range, depending on distance, up from an earlier band of around ₹150 to ₹700. The steepest increases are in mid-haul routes, where surcharges have gone up by up to ₹400 per sector.
Last week, IndiGo’s board approved the appointment of the airline’s new CEO William Walsh, who was also the former CEO of British Airways. Walsh is set to take charge of IndiGo airlines from August 3. He has been the director general of IATA since 2021.
Analysts were of the view that given IndiGo’s ambition of becoming a global airline, appointing a CEO with international experience is well within its strategy.
IndiGo shares gained 11.1% to hit an intraday high of ₹4,744 apiece on Wednesday. The stock was up 9.5% at ₹4,673.1 apiece at 9.50 am. The stock is down 8.3% this year, so far. The stock is among the top gainers on the Nifty 50 index.
Also Read: PSU Banks led by Union Bank rally up to 6% as bond yields cool off sharply
