IndiGo shares slip 5% amid proposed capping of airfares

Shares of InterGlobe Aviation Ltd, the parent firm of airline IndiGo, slipped nearly 5% today after a Parliamentary panel proposed route-specific capping of airfares and setting up of a separate entity to exercise control over air ticket prices, amid concerns in various quarters about surging fares.

InterGlobe Aviation stock fell 4.7% to Rs 2982.40 against the previous close of Rs 3130.15 on BSE. Earlier, InterGlobe Aviation shares opened flat at the same level. Total 0.24 lakh shares of the firm changed hands amounting to a turnover of Rs 7.39 crore.

The stock has gained 51.24% in one year and gained 3.67% since the beginning of this year. The shares have climbed 19.42% in three months. Market cap of the firm fell to Rs 1.18 lakh crore.

The aviation stock hit 52-week high of Rs 3301.40 on February 10, 2022 and a 52-week low of Rs 1810 on March 28, 2023.

After considering the responses from the civil aviation ministry on airfares, the committee said that self-regulation of ticket prices by airlines has not been effective, according to a PTI report.

The Parliamentary Standing Committee on Transport, Tourism and Culture January 8 tabled the report on the action taken by the government on its recommendations/observations on the issue of fixing of airfares.

In the report, the panel said it has seen various instances where airfares have been abnormally increased, especially during festivals or holidays. The panel opined that that self-regulation by airlines was not been effective and also recommended that a mechanism may be evolved whereby DGCA is empowered to regulate air tariffs.

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