Suryaa Business Desk: The shares of InterGlobe Aviation (IndiGo), the leading Indian aviation sector, are on the path of gains in the stock market. Fuel... The shares of InterGlobe Aviation (IndiGo), the leading Indian aviation sector, are on the path of gains in the stock market.
Although there is concern in the market over the increase in fuel prices, the increase in air fares and effective cost control measures taken by the company have helped the company. Financial analysts opined that Indigo's operating income has been better than expected due to steady increase in air travel, festive and travel season. Although rising aviation fuel (ATF) prices have increased pressure on airlines' profitability, the financial strategies adopted by IndiGo have effectively countered the adverse effects.
The financial strength of the organization has increased due to reduction in operating expenses and better seat occupancy ratio. Market experts believe that IndiGo, which holds the lion's share of the domestic airline market, is likely to register good growth going forward with network expansion and addition of new aircraft.
