One decision by Pakistan and this Indian company lost Rs 80000000000 due to…, the company is….
The recent Pahalgam incident has increased the bitterness between India and Pakistan, starting a new diplomatic war between the two countries. On one hand, India has suspended the Indus Water Treaty, which will affect more than 20 crore people of Pakistan. On the other hand, Pakistan has closed its airspace for India, the effect of which will be seen on Indian airline companies. As per a report, due to the decision, the time of flights going to America and Europe could increase by two to three hours, due to which the operation cost of airlines will increase and common people will have to pay more airfare.
Following the decision of Pakistan, India’s largest airline company Indigo suffered heavy losses on Friday. The company’s shares fell by about 4 percent and its market cap decreased by more than Rs 8 thousand crores.
Big Fall In Indigo Shares
IndiGo, India’s largest airline, experienced a significant stock price drop on Friday, closing at Rs 5,313.20, a 3.75% decrease or Rs 207.15 per share. This followed the closure of Pakistani airspace, with intraday lows reaching Rs 5,198.70, a Rs 321.65 decline from the day’s opening price.
How Much Growth Has Happened In One Year
In the last 6 months, the company’s shares have given investors a return of 32 percent. In the current year, the company’s shares surged by 15.48 percent. In the last year, its shares have given investors a return of about 35 percent.
One year ago, on April 25th, 2024, the company’s stock reached a 52-week low of Rs 3,728.45. As of April 22nd, 2025, the stock price has risen to Rs 5,646.90, representing an increase of Rs 1,918.45 over the past year. However, the current price is Rs 333.70 below the stock’s 52-week high.
Big Losses To Investors
IndiGo experienced a major market capitalisation decline on Friday. The company’s market cap fell from Rs 2,13,328.06 crore on Thursday to Rs 2,05,322.97 crore at the close of trading on Friday, showing a loss of Rs 8,005.09 crore. This drop represents a major financial setback for both the company and its shareholders.
Why did the loss occur?
The biggest reason for the fall in IndiGo’s shares is none other than Pakistan’s decision to close its airspace for India. After this decision, Indian flights will take an additional 2 to 3 hours to reach the US and Europe. Due to this, the company’s operation cost will increase.
Due to this, Indians will have to pay 8 to 12 percent more to travel to the US and Europe.
Meanwhile, Akasa Air experienced a 156% year-over-year increase in passenger numbers, although its market share remained at a modest 0.7%. In comparison, Air India and SpiceJet carried 3.8 million and 0.5 million domestic passengers, respectively. IndiGo’s passenger load factor, while down slightly by 60 basis points from the previous month, held steady at a robust 85.5%.
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