Shares of InterGlobe Aviation Ltd, owner of India’s largest domestic carrier by market share - IndiGo, fell as much as 3.7 percent today, a day after the company posted its first-ever quarterly loss since its market debut in 2015. The stock is witnessing selling pressure now. More than 1.2 million InterGlobe shares traded hands, as of 10:07 IST, compared with their 30-day average of 1.6 million shares.
InterGlobe’s shares have plunged more than 30 percent so far this year amid intense competition.
The Company's Chief Executive Officer Rahul Bhatia comes up with clarifications like "higher crude oil prices and a depreciating rupee have dented Indian airlines’ profit in the world’s fastest-growing aviation market."
InterGlobe has been able to sustain itself so far, but yesterday its employees were emailed to bear with the situation by none other than the CEO.
Rival airlines also took a hit on Thursday, with Jet Airways shares slipping up to 2.4 percent, while SpiceJet Ltd fell as much as 3.14 percent.
Jet Airways Ltd is scrambling to keep itself afloat. More than 70 days ago, its Chairman has said that the Company has only 60 days of steam left.
State-owned Air India is surviving on government bailout.
Uncertainty has led InterGlobe to hold its decision to own some Airbus A320neo aircraft. “At times when there is a little uncertainty we want to be prudent with cash,” its interim Chief Executive Officer Rahul Bhatia said on a post-earnings analyst call on Wednesday. The company will continue to lease them, he added.
