IndiGo Shares Climb After Placing A Fresh Order Of 30 Wide-Body Aircrafts

IndiGo’s shares climbed after the airline ordered 30 Airbus A350-900 aircraft, aiming to expand its network and enter the wide-body aircraft segment, according to a statement to the exchanges.

What Happened: This $9 billion (₹74,993 crore) deal, as estimated from 2018 prices reported by Reuters, marks a significant expansion for Indigo since bulk deals typically offer aircraft at rates well below half the catalogue price.

Pieter Elbers, IndiGo’s CEO, stated that the addition of the Airbus A350-900 fleet marks the next phase in becoming a major global aviation player, highlighting IndiGo’s commitment to India’s growth and its strategic partnership with Airbus.

The company anticipates that deliveries, which begin in 2027, will also introduce Rolls Royce's Trent XWB engines to their operations, signalling the start of a new relationship with the engine manufacturer. IndiGo currently operates over 350 aircraft and leads India’s aviation market with more than 60% share.

See also: Bajaj Finance’s Share Price Tanks Over 5% As Weak Outlook Dampens Investor Sentiment

In June 2023, IndiGo placed a record single order for 500 aircraft with Airbus, involving various models such as the A320NEO, A321NEO, and A321XLR, with nearly 1,000 aircraft still pending delivery.

IndiGo has also recently initiated flights to Africa, West Asia, and Southeast Asia and has established codeshare agreements with Turkish Airlines and KLM to extend its reach into Europe.

Price Action: InterGlobe Aviation Ltd. shares were trading 1.72% higher at ₹3,880.85 on Friday morning, shortly after markets opened for trading.

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