IndiGo shares in focus: Three reasons why airline stock is in the spotlight

ATF price cut by 3%

Shares of the airline company will trade actively as the price of jet fuel, or aviation turbine fuel (ATF), was on Sunday slashed by 3% – the third straight monthly reduction on softening international crude oil benchmark prices.

The price of aviation turbine fuel (ATF) was reduced by ₹2,414.25 per kilolitre, or 2.82%, to ₹83,072.55 per kl in the national capital – home to one of the busiest airports in the country, according to state-owned fuel retailers.

The price cut follows a 4.4% (₹3,954.38 per kl) reduction on May 1 and a steep 6.15% (₹5,870.54 per kl) reduction effected from April 1. Together with Sunday's reduction, the price cuts have more than offset the hikes that occurred earlier this year.

The ATF price in Mumbai was slashed to ₹77,602.73 per kl from ₹79,855.59, while those in Chennai and Kolkata were reduced to ₹86,103.25 and ₹86,052.57 per kl, respectively.

A reduction in the price of ATF will ease the burden on commercial airlines, for whom fuel makes up almost 40% of the operating cost.

It must be noted that state-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) revise prices of ATF and cooking gas on the first of every month based on the average price of benchmark international fuel and foreign exchange rates.

IndiGo, Delta, Air France-KLM, and Virgin Atlantic announce partnership

Another reason why IndiGo shares will be in focus today is because IndiGo, Delta Air Lines, Air France-KLM and Virgin Atlantic on Sunday announced a partnership to enhance air connectivity from India to Europe as well as North America.

"Linking dozens of cities in the US, Canada, Europe and India, the airlines aim to meet rising demand for international travel while setting new standards for connectivity and cooperation in global aviation," a release said.

IndiGo, India's largest airline, is expanding its international network and is set to start flights to 10 overseas cities in the current fiscal year ending March 2026.

India is one of the world's fastest-growing civil aviation markets.

IndiGo's fleet expansion

IndiGo on Sunday announced it will place a firm order for another 30 wide-body A350-900 planes as the country's largest airline steps up its efforts for long-term international expansion.

In April last year, the airline placed a firm order for 30 A350 aircraft, and there was an option to order 70 more such planes.

At a briefing in the national capital, IndiGo CEO Pieter Elbers said that out of the option for 70 planes, it is now placing a firm order of 30 aircraft.

The airline has over 900 planes on order that are to be delivered in the coming years.

IndiGo is also set to operate flights to 10 new overseas cities with leased Boeing 787 planes in the current fiscal year ending March 2026.

Currently, the airline has more than 430 planes in its fleet and operates around 2,300 daily flights.

IndiGo Q4 FY25 Results

The airline company posted its highest-ever fourth-quarter profit after tax (PAT) of ₹3,067.5 crore, mainly helped by strong air travel demand.

The company's PAT in the three months ended March 2025 jumped 62% from ₹1,894.8 crore logged in the year-ago period.

Its board also recommended a dividend of ₹10 per equity share.

In the fourth quarter of the 2024-25 fiscal year, IndiGo's capacity increased by 21% to 42.1 billion, while the number of passengers carried rose 19.6% to 31.9 million, according to a release.

Total income rose to ₹23,097.5 crore in the fourth quarter of the 2024-25 financial year from ₹18,505.1 crore in the same period a year ago.

InterGlobe Aviation stock performance

Shares of the company have rallied nearly 21% in the past six months, around 16% so far in 2025, and around 24% in the past 12 months.