IndiGo Tops Global Airline Valuation Charts with ₹2 Lakh Crore Market Cap

Historic Milestone for InterGlobe Aviation as IndiGo Surpasses Delta and Ryanair

In a landmark development that underscores India’s rising dominance in the global aviation sector, IndiGo, operated by InterGlobe Aviation Ltd., has emerged as the most valuable airline in the world by market capitalisation. The airline briefly surpassed global aviation titans such as Delta Air Lines and Ryanair, with its valuation soaring past the ₹2 lakh crore mark (approximately $23.3 billion). This milestone reflects a combination of strong domestic dominance, ambitious international expansion plans, and robust investor confidence in the company’s long-term strategy.

The stock has rallied over 13 percent year-to-date, a performance that is particularly notable in the context of broader market weakness. While the Nifty 50 Index has declined nearly 6 percent amid global tariff-related uncertainties and risk-off sentiment, IndiGo shares have demonstrated strong relative strength. The stock closed nearly 1 percent higher in the most recent trading session, further consolidating its leadership position within the aviation sector.

Highlights:

• IndiGo surpasses Delta and Ryanair to become the most valuable airline globally.

• Market capitalisation crosses ₹2 lakh crore (~$23.3 billion).

• Stock is up 13% in 2025, outperforming broader market weakness.

• Signals investor confidence in the airline’s strategy and execution.

Dominant Market Share and Ambitious Global Expansion Drive Valuation Surge

IndiGo currently commands over 60 percent of India’s domestic aviation market, far ahead of its nearest rivals. However, what is increasingly capturing investor attention is the airline’s aggressive push into international markets. The management has set an ambitious target for overseas operations to contribute up to 40 percent of its Available Seat Kilometers (ASK) by FY2030, up from a projected 28 percent in FY25. This pivot toward international routes is expected to diversify the company’s revenue base and reduce its dependence on the highly competitive domestic market.

To support its international aspirations and overall capacity expansion, the airline plans to add approximately 50 aircraft in FY26. This will augment its current fleet of 439 aircraft, of which around 50 remain grounded due to supply chain or maintenance issues. Management has also guided for early double-digit ASK growth in the upcoming fiscal year, a signal that capacity expansion remains a central pillar of the airline’s growth strategy. The continued focus on operational efficiency, fleet modernization, and route diversification is further expected to enhance yield and load factor performance.

Highlights:

• IndiGo holds over 60% share in India’s domestic aviation sector.

• Plans to increase international ASK share to 40% by FY30.

• FY26 will see the addition of 50 new aircraft to expand operations.

• Management expects early double-digit growth in ASK in FY26.

Q3 FY25 Results Reflect Seasonal Base Effect Despite Revenue Surge

Despite achieving the milestone in valuation and showing strong long-term growth potential, IndiGo’s third-quarter financial performance for FY25 reflected the impact of a high base effect. The company reported a net profit of ₹2,449 crore, marking an 18 percent decline from ₹2,998 crore posted in Q3 FY24. The previous year’s numbers had been bolstered by a robust travel season coinciding with major festivals during the October–December period, a seasonal boost that was absent this time around.

Nonetheless, revenues surged 14 percent year-on-year to ₹22,111 crore, up from ₹19,452 crore, driven by sustained demand in air travel. The airline recorded a 12 percent increase in Available Seat Kilometers (ASK) and a 13.5 percent jump in Revenue Passenger Kilometers (RPK). Moreover, the load factor improved by 1.2 percentage points, settling at a healthy 86.9 percent, indicating improved aircraft utilization and consistent passenger demand across routes. These operating metrics reflect IndiGo’s resilience amid seasonal fluctuations and broader macroeconomic uncertainties.

Highlights:

• Q3 FY25 net profit at ₹2,449 crore, down 18% YoY due to seasonal base.

• Revenue rose 14% to ₹22,111 crore on higher capacity and demand.

• ASK grew 12%, while RPK increased by 13.5%.

• Load factor improved to 86.9%, up 1.2 percentage points YoY.