InterGlobe Aviation 's budget carrier IndiGo has successfully restored full operational stability, now operating 1,950 flights daily that seamlessly connect all 138 destinations across its network. The airline has demonstrated remarkable recovery following significant network adjustments, achieving zero same-day cancellations for three consecutive days and restoring on-time performance to top-tier industry standards.

Potential Relief from Capacity Restrictions

The Aviation Minister has indicated that capacity reductions imposed on IndiGo could be lifted after the airline submits its proposal to authorities. This development comes as the carrier has successfully demonstrated operational stability and compliance with regulatory requirements, maintaining consistent performance across its network.

Complete Network Recovery Achieved

IndiGo has announced that all destinations in its network have been fully connected since December 8, marking a complete turnaround from the operational disruptions experienced earlier. The airline's operations have stabilized since December 9, with the company maintaining a reliable schedule with no same-day cancellations for the last three days, except for negligible cancellations due to weather, technical, or other external uncontrollable factors.

DGCA Regulatory Compliance and Recovery Path

The operational recovery comes after IndiGo successfully implemented network adjustments following the DGCA's December 9 order to curtail scheduled flights for the Domestic Winter Schedule by 10.00%. The airline has demonstrated its ability to maintain operational efficiency while complying with regulatory requirements, working hand-in-hand with authorities to normalize operations. The Aviation Minister's recent statement suggests a potential pathway for the airline to regain full capacity once it submits the required proposal.

Revised Capacity Outlook Impact

Despite the operational recovery and potential for capacity restriction relief, the DGCA order continues to impact IndiGo's capacity guidance. The airline has revised its capacity growth expectations from high teens growth to high single to early double-digit percentage growth in terms of ASKs (Available Seat Kilometers).

InterGlobe Aviation , operating under the IndiGo brand, has garnered positive attention from leading investment banks, with both Citi and Morgan Stanley issuing favorable ratings on the airline stock.

Dual Analyst Support

The airline has received backing from two major investment banks, with Citi maintaining a 'Buy' rating and setting a price target of ₹5,800.00 per share. Meanwhile, Morgan Stanley continues to hold an overweight rating on the stock with a higher target price of ₹6,540.00.

Investment Bank Perspectives

Citi's 'Buy' rating reflects the investment bank's confidence in InterGlobe Aviation's operational capabilities and market positioning within India's aviation sector. The ₹5,800.00 target price represents Citi's valuation assessment based on their analysis of the company's fundamentals and growth prospects.

MorganStanley's overweight rating with a ₹6,540.00 target price indicates an even more optimistic outlook, suggesting the investment bank expects the stock to outperform the broader market or sector average. This positive assessment reflects their analysis of various factors including operational performance, market position, and growth potential.

Market Significance

The convergence of positive ratings from both Citi and Morgan Stanley underscores the professional investment community's favorable view of InterGlobe Aviation. These recommendations from major global banks are closely monitored by institutional and retail investors, providing valuable insights into professional assessment of company fundamentals and aviation sector dynamics.