InterGlobe Aviation shares gain after Centre notifies new airfare pricing rules — Check details

Shares of InterGlobe Aviation, the parent company of IndiGo Airlines, gained on Monday, November 2, after the Central government notified the new airfare pricing rules.

The Rule 192 of the Bharatiya Vayuyan Niyam, 2026 deals with airline tariffs.

Airlines can set their own tariffs, which are to factor in operating costs. Airlines are required to submit the tariffs to the Directorate General of Civil Aviation (DGCA).

As per the new norms, airlines have to disclose the base fare, taxes and fees, cancellation charges, refund conditions and any additional charges.

Rule 192(6) empowers government intervention, which must be in public interest.

The rules do not dot define "extraordinary" circumstances. There is no explicit clarification on airfare caps either. It also remains in question if the Centre can impose temporary or route-specific fare caps?

The new rules indicate that there are no blanket caps for airlines. There are also greater tariff disclosure requirements from them. The DGCA would be monitoring the airline tariffs and airlines retain pricing flexibility.

On another note, HSBC has a "buy" rating and a target price of ₹5,752 apiece on the stock. This indicates an upside of 18% from its previous close.

HSBC said IndiGo's second quarter EBITDA beat the Visible Alpha consensus by 25% due to stronger-than-expected yield and lower fuel bill compared to the consensus.

It said the third quarter passenger revenue per available seat kilometre (PRASK) guidance for over 25% growth, capacity growth for the quarter and full-year is seen in low single-digit range.

The near-term headwinds are strong but long-term strategy remains plausible, it added.

Shares of InterGlobe Aviation were trading 1% up at ₹4,921.7 apiece at 9.36 am on Monday. The stock has gained 15.6% in the last six months but is down 3.4% this year, so far.