IndiGo rises more than 7 per cent after new aircraft order

The domestic airline major, Interglobe aviation famously known as IndiGo airlines, saw buzz in stock price after it reported that it has placed the order of 300 aircrafts, on Tuesday evening.

The airline released a press note that it has placed an order of 300 A320neo family aircrafts to Airbus, which is the world leader in aircraft manufacturer. The order is one of the biggest to Airbus ever from a single airline operator. The latest order includes mix of A320neo, A321neo and A321XLR aircrafts. After the induction of new planes the total tally of A320neo family aircraft orders reaches to 730.

The stock price took a beating after company's second quarter results. It reported net loss of Rs. 1061.99 crore for the quarter as compared to loss of Rs. 651.55 crore for same quarter of last fiscal year. The company attributed the weak results to accounting changes on aircraft leasing and weak industry sentiments. The new aircrafts order can be expected to give positive sentiment amid weak industry scenario. It also gives hope of higher market share to the airline which is already a market leader in the low cost airline industry in India.

Reacting to the news, stock price jumped more than 7 per cent intra-day on Wednesday. The gains came on the back of three day continues fall in price after Q2FY20 results. At 12.30 the stock price traded at Rs. 1518 per share, up by 7.64 per cent on BSE.