Today, the share price of InterGlobe Aviation, the parent company of IndiGo, dropped by 4.7% to Rs 2982.40 compared to the previous closing price of Rs 3130.15 on the BSE. Initially, InterGlobe Aviation shares opened at the same level.
Today, shares of InterGlobe Aviation Ltd, the parent company of the airline IndiGo, declined by nearly 5% following a recommendation by a Parliamentary panel for route-specific capping of airfares and the establishment of a separate entity to regulate air ticket prices. These proposals arise amid concerns from different sectors regarding escalating fares.
The stock of InterGlobe Aviation dropped by 4.7% to Rs 2982.40 compared to the previous closing price of Rs 3130.15 on the BSE. Initially, InterGlobe Aviation shares opened flat at the same level. There was a total turnover of Rs 7.39 crore as 0.24 lakh shares of the company were traded.
The stock has surged by 51.24% over the past year and has increased by 3.67% since the beginning of this year. Within the last three months, the shares have risen by 19.42%. The market capitalization of the company has declined to Rs 1.18 lakh crore.
The aviation stock reached its 52-week high of Rs 3301.40 on February 10, 2022, and its 52-week low of Rs 1810 on March 28, 2023.
Following the civil aviation ministry's responses regarding airfares, the committee noted that self-regulation of ticket prices by airlines has proven ineffective, as per a PTI report.
On January 8, the Parliamentary Standing Committee on Transport, Tourism, and Culture presented its report on the government's actions regarding its recommendations and observations on the matter of fixing airfares.
The panel noted in the report several instances of significantly increased airfares, particularly during festivals or holidays. It expressed the opinion that self-regulation by airlines has not been effective and recommended the establishment of a mechanism empowering the DGCA to regulate air tariffs.
