IndiGo, India’s largest carrier, momentarily ascended to the pinnacle of the global aviation market on Wednesday, overtaking Delta Air Lines to become the world’s most valuable airline by market capitalisation, according to Bloomberg data.
Buoyed by a robust rally, IndiGo’s stock price surged to a record high of Rs 5,265 during intraday trading.
Around 2:30 pm, this lifted its market capitalisation to $23.24 billion, marginally surpassing Delta’s $23.18 billion.
However, the lead was short-lived, and by the close of trade, IndiGo’s valuation slipped to $23.16 billion, placing it just behind the US carrier once again.
For an airline that began commercial flights in August 2006, IndiGo’s rise to the top of the global charts marks a remarkable milestone, especially when compared with Delta’s near-century legacy, having commenced operations in 1929.
Just six years ago, Delta’s market value stood at $36.67 billion, while IndiGo was valued at $7.72 billion.
Fleet expansion and rising flight numbers fuel growth prospects
IndiGo’s impressive trajectory is underpinned by aggressive expansion plans.
As of the end of 2024, the airline operated a fleet of 437 aircraft and had secured delivery commitments for 925 more planes from Airbus, set to arrive through 2035.
Currently, IndiGo operates around 15,768 flights weekly, reflecting a 12.7% increase from the same period last year, according to aviation analytics firm Cirium.
By contrast, Delta continues to run 35,144 flights weekly, a 6.6% rise over the previous year.
Indian carriers have been rapidly scaling up their fleets to meet growing demand.
Since 2023, several significant orders have been placed, including Air India’s combined 555-plane order with Airbus and Boeing, Akasa Air’s order for 150 Boeing 737 Max aircraft, and IndiGo’s own record-breaking deal for 500 A320neo family planes in June 2023.Indiag
Despite Delta’s revenues being nearly eight times higher than IndiGo’s parent company, InterGlobe Aviation, the gap in market capitalisation has narrowed significantly.
IndiGo’s strong market share and falling oil prices aiding rally, analysts see more upside
This is largely due to InterGlobe shares climbing 13% so far in 2025, while Delta’s stock has dropped over 25%.
Analysts attribute IndiGo’s strong performance to its commanding market share and favourable tailwinds, such as falling oil prices.
“IndiGo remains a structural story, which is a play on Indian macros, like the rising middle class population, and changes in transportation preferences from railways to aircrafts,” said Sabri Hazarika, senior research analyst-institutional research, Emkay Global.
Hazarika forecasts 15-16% compounded earnings growth, with a price target of Rs 6,000, indicating further upside potential.
Dharan Shah, founder of Tradonomy Research, notes that IndiGo’s market capitalisation, at about 2.5 times sales, remains reasonable compared with peers.
“Even a 50% increase in airline traffic over the next five years could rapidly elevate profitability,” he said, adding that the resolution of promoter-related share overhang has improved investor sentiment.
Shah has set a bullish price target of Rs 6,140 for the stock.
With India’s aviation market poised for sustained growth, and IndiGo’s ambitious expansion firmly underway, the carrier appears well-positioned to maintain its ascent on the global stage.
Delta’s stock pops on profit beat but airlines hurt due to tariffs
On the other hand, Delta Airlines has been struggling along with other airlines due to weaker-than-expected travel demand, ongoing economic uncertainty, and the impact of looming tariffs.
The company’s stock popped on Wednesday after it reported a stronger-than-expected profit for the first quarter, however it also warned that growth is slowing due to global trade uncertainties and softer booking trends.
The airline, which had entered 2025 with optimism, has scaled back its capacity expansion plans for the second half of the year.
Despite Delta’s reluctance to update its full-year guidance, the airline continues to forecast positive margins, targeting operating margins between 11% and 14% in the second quarter.
Lower fuel costs could provide some cushion, with US oil prices falling 6% on Wednesday to below $56 per barrel.
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