Bloomberg reported that IndiGo India, the largest airline in the country, briefly ascended the top of the aviation industry on Wednesday. It surpassed Delta Air Lines as the most valuable airline worldwide by capitalisation.
IndiGo stock prices surged during intraday trades to an all-time high of Rs. 5,265 boosted by a strong rally.
This boosted its capitalisation slightly to surpass Delta’s (23,18 billion) at around 2:30pm.
IndiGo was able to gain a slight lead, but it quickly slipped back behind US carriers. By the end of the day, IndiGo had fallen just $23,16 billion short.
IndiGo began its commercial flight operations in August 2006. Its ascent to the top spot in the world charts is a significant milestone.
Six years ago Delta was worth $36.67 Billion, and IndiGo $7.72 Billion.
Growth prospects are fueled by the expansion of fleets and increasing flight numbers
IndiGo’s trajectory has been boosted by its aggressive expansion plans.
Airbus has committed to deliver 925 additional planes by 2035.
According to Cirium, IndiGo currently operates 15,768 weekly flights, a 12.7% rise from the same time last year.
Delta, on the other hand, continues to operate 35,144 weekly flights, an increase of 6.6% over last year.
Indian airlines have rapidly increased their fleets in order to keep up with the growing demand.
In the years since 2023 several important orders have been made, such as Air India’s combined 555 plane order with Airbus, Boeing and Akasa Air, Akasa Air’s 150 Boeing 737 Max airplanes, and IndiGo’s record-breaking 500 A320neo Family aircraft deal in June 2023.
The gap between the market cap of InterGlobe Aviation and Delta, despite their revenues being almost eight times greater, has shrunk significantly.
Analysts see further upside with IndiGo’s high market share, falling oil price and analysts.
InterGlobe’s shares have risen 13% in the first half of 2025 while Delta has fallen over 25%.
Analysts credit IndiGo’s impressive performance to the company’s dominant market share, as well as favorable tailwinds such a falling oil price.
“IndiGo remains a structural story, which is a play on Indian macros, like the rising middle class population, and changes in transportation preferences from railways to aircrafts,” said Sabri Hazarika, senior research analyst-institutional research, Emkay Global.
Hazarika predicts 15-16% growth in earnings, and a target price of Rs 6,500, which indicates further upside potential.
Dharan D. Shah, the founder of Tradonomy Research notes IndiGo’s market cap, which is about 2.5x sales, still remains reasonable when compared to peers.
He said that a 50% rise in air traffic within the next five-year period could boost profitability. The resolution of the promoter share overhang had improved investor confidence.
Shah set an optimistic price target for the stock of Rs 6,140.
IndiGo is well positioned for continued growth on the international stage. With India’s growing aviation industry and its ambitious expansion underway, IndiGo appears to be in a strong position.
Delta stock soars after a record profit, but airline stocks are hurt by tariffs
Delta Airlines, on the other hand has struggled along with the rest of the airlines because the travel demand was weaker than expected, the economic situation is uncertain, and tariffs are looming.
The company’s stock popped on Wednesday after it reported a stronger-than-expected profit for the first quarter, however it also warned that growth is slowing due to global trade uncertainties and softer booking trends.
The airline has lowered its plans to expand capacity in the second half.
Delta has resisted updating its guidance for the full year, but the airline still expects positive operating margins. It targets margins of between 11% to 14% during the second quarter.
The US oil price fell 6% to $56 per barrel on Wednesday, which could be a cushion.
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