Indigo Shares Rise After CEO Quits
The stock rose as much as 3% on the day to 4,512.90, after sliding 21.4% since it cancelled thousands of flights in early December
Shares in India's IndiGo rose on Wednesday, as founder Rahul Bhatia took over as interim chief after CEO Pieter Elbers resigned, with analysts expecting a smooth transition despite last year's crisis.
The stock rose as much as 3% on the day to 4,512.90, after sliding 21.4% since it cancelled thousands of flights in early December.
"Historically, leadership transitions have been smooth, with founder oversight ensuring continuity," brokerage Jefferies said in a note. It flagged operational stability amid the Middle East crisis, clarity on summer schedules and progress on CEO succession as key factors to watch in the near term.
HSBC said the carrier is not expected to make major strategic shifts, with Bhatia likely to focus on operational efficiency and bolstering the airline's image.
IndiGo, which commands about 65% market share in India - the world's fastest-growing aviation market, had to cancel 4,500 flights in December after failing to plan adequately for pilot rest and duty rules, stranding tens of thousands of passengers.
Regulators later reprimanded Elbers for "inadequate overall oversight of flight operations and crisis management."
Although IndiGo released only Elbers' resignation letter citing "personal reasons", Bhatia referenced the December cancellations - the biggest crisis in the budget carrier's 20-year history - in an internal memo outlining his new role.
Meanwhile, global airline shares stabilised on Tuesday after U.S. President Donald Trump said the war could be "over soon". Fuel, which typically accounts for 20%-25% of operating costs, is the second-largest expense for carriers after labour.