Airline Stock Alert: IndiGo Takes Off For Longest Winning Streak Since Listing; Rallies For 12-Days In Row

InterGlobe Aviation, the parent company of India's leading airline, IndiGo, is on a winning streak, marking its twelfth consecutive day of gains. This surge in stock performance is the longest since the company went public in November 2015, underscores.

Today, IndiGo shares broke its previous record of an 11-day winning run set between August 23 and September 6, 2021. The driving force behind this performance is attributed to a significant drop in crude oil prices, plummeting over 4% on December 12. Brent Crude, a global benchmark, is now resting comfortably around $73 a barrel, a level last seen in March 2023.

This downturn in oil prices comes as a breather air for IndiGo and its counterparts, including SpiceJet, Air India, and Akasa. The aviation industry, heavily dependent on jet fuel, witnessed a peak in prices in September, reaching Rs 1.12 lakh per kilolitre as Brent crude surged beyond $90 a barrel. With jet fuel constituting almost 40% of operational costs for all airlines, the recent drop in prices indicates a substantial relief.

IndiGo's stock has been on an upward trajectory, gaining 16.65% in the past month, over 26% in the last six months, and 45.15% on a year-to-date basis. On Wednesday, December 13, the stock hit its 52-week high of Rs 3,007 per share.

As the aviation industry rides the tailwinds of decreasing oil prices, investors are optimistic about the continued success of InterGlobe Aviation.