With oil on the boil, Vistara's loss may not be IndiGo's gain

Shares of low-cost airline IndiGo hit record high on the bourses soon after reports of pilot crisis at Vistara emerged.

- NIKITA VASHISHT

The development also saw airfares surge by around 25 per cent on select routes. Shares of IndiGo hit a lifetime high of ₹3,68.5 on April 2, 2024, and has gained 2.4 per cent on the bourses in April. While the benchmark S&P BSE Sensex has risen 1.4 per cent during the period.

While Vistara has decided to curtail flight operations, reports suggest that the airline is working towards returning to normalcy.

Going ahead, analysts believe the near-term outlook for IndiGo - which is owned and operated by InterGlobe Aviation- remains slightly cautious as the situation is developing. "Air fares have already jumped this month, likely benefitting IndiGo. Any further increase in ticket price may see capping action from the regulatory watchdog," cautioned Gaurang Shah, senior vice president, Geojit Financial Services. G Chokkalingam, head of research at Equinomics Research, however, points out that incremental benefits from the crisis at Tata-owned airline, if any, may be outweighed by risks from surging oil prices.