IndiGo overtakes Delta Airlines to become world's most valuable airline
What's the story
India's largest airline IndiGo has become the most valuable airline in the world.
With a market cap of $23.4 billion, IndiGo has overtaken US-based Delta Airlines and Ryanair Holdings to take the top spot.
The change in ranking comes after IndiGo's shares jumped 35% from their November lows, while Delta's stock fell nearly 50% in the last two months.
Stock surge
Stock performance outshines competitors
IndiGo's stock performance this year has been nothing short of phenomenal, with a 14% rally and record high today.
The airline is the only one among the top 10 globally to have recorded a gain in stock price so far this year.
Delta Airlines and United Airlines, on the other hand, saw their shares plunge by 41% over the same period.
Analyst outlook
Analysts optimistic about future growth prospects
Analysts remain optimistic about IndiGo's long-term growth potential, given its strong volume growth and potential cost reduction.
Morgan Stanley, which has an 'overweight' rating on IndiGo with a 12-month target price of ₹6,085, expects the company to report robust numbers for Q4 FY25 on the back of favorable yields.
The firm cited ramp-up in international operations and lower fuel prices as drivers for this performance.
Fleet expansion
IndiGo's fleet size and future plans
Despite being the top player by market capitalization, IndiGo is only the fourth largest airline in the world in terms of fleet size.
As of February 2025, the airline's operational fleet consisted of 355 aircraft out of 439.
The company aims to increase its international capacity share from FY25's 28% to 40% by FY30.