Indigo is on a roll today. The stock price which has closed yesterday at Rs.1410.30, opened higher at Rs.1454 and went on to hit an intraday high at Rs.1484.95. After two days of fall, it is up in the green currently.
Notwithstanding the fact that the company posted its biggest ever quarterly loss in Q2FY20 at Rs.1062 crore, the market was more focused on the news that it has placed firm order for 300 A320neo family aircraft with planemaker Airbus, comprising A320neos, A321neos and A321XLRs. IndiGo’s total number of A320neo family aircraft order now stands at 730.
This is one of Airbus largest aircraft orders ever with a single airline operator. IndiGo, which had a fleet of 245 aircraft at the end of September 2019, added seven new domestic routes and six international destinations during Q2FY19. Its domestic market share was at 47.7% v/s 42.4% (YoY). Obviously, a big beneficiary of Jet Airways closing down.
The huge loss for Q2 was on account of higher expenses related to aircraft repair and maintenance, which nearly doubled to Rs 153 crore. Depreciation and amortisation costs grew more than fivefold to Rs 1,029 crore.