Shares of InterGlobe Aviation, the parent company of IndiGo, fell sharply on Thursday morning, dropping 4.44per cent to ₹3,995 as of 10.24 AM on the National Stock Exchange, extending a broader selloff that has wiped out over 21per cent of the stock’s value year-to-date.
The decline comes a day after the airline announced a revision in fuel surcharges on both domestic and international routes, effective from 0001 hours on April 2, for all new bookings. The airline cited a 130per cent month-on-month surge in Air Turbine Fuel (ATF) prices as reported by IATA’s Jet Fuel Monitor. The government intervened to limit the pass-through to airlines for domestic routes to 25per cent, and IndiGo has calibrated its domestic fuel charges on a distance-slab basis — ranging from ₹275 for routes under 500 km to ₹950 for routes above 2,000 km. International surcharges are steeper, going up to ₹10,000 per sector for UK and European routes.
HSBC flagged significant headwinds for the aviation sector, pointing to rising oil prices, a depreciating rupee against the dollar, and flight cancellations. The brokerage maintained a Buy rating on InterGlobe Aviation but slashed its target price to ₹5,210 from ₹5,860. The bank warned that the fuel surcharge may be insufficient to fully offset cost pressures, and that airlines could cut capacity in the summer months to align with demand, while base fares may stay elevated.
At the current price of ₹3,995, the stock is trading well below its 52-week high of ₹6,232.50 touched in August 2025, though it remains well above its 52-week low of ₹3,895.20 hit just days ago on March 23. The stock’s symbol P/E stands at 50.34. Trading volume stood at 6.84 lakh shares with a traded value of approximately ₹274 crore.