IndiGo Share Price Rises Following Codeshare Partnership Announcement With Japan Airlines

Share price of IndiGo operator InterGlobe Aviation Ltd. rose on Tuesday, after it announced a new codeshare partnership with Japan Airlines Co. The collaboration, which is set to begin on Dec. 16, 2024, is aimed at enhancing connectivity and fostering cultural and business exchanges between India and Japan.

This partnership will initially help Japan Airlines expand its connectivity to India. In later phases, it will also provide IndiGo passengers with more travel options through JAL’s extensive domestic and international network. IndiGo, which holds over 60% of the Indian aviation market, will offer codeshare services on its domestic routes connecting with JAL flights operating between Delhi and Bengaluru.

Japan Airlines currently offers daily flights between Tokyo (Haneda) and Delhi, as well as five weekly flights between Tokyo (Narita) and Bengaluru. Through this partnership, JAL will further strengthen its network in India, connecting major cities via IndiGo’s wide-reaching domestic network. The arrangement will cover 18 destinations in India, providing greater travel choices for tourists, business professionals, and leisure travelers alike.

Japan Airlines will offer marketed flights for travel beginning on Dec. 16, 2024. Codeshare flights are included but remain subject to government approval. Reservations and ticket sales for these flights will open on Dec. 4, 2024.

Share price of InterGlobe Aviation rose as much as 1.12% before giving up gains to trade 0.3% lower at Rs 4,233 apiece, as of 09:50 a.m. This compares to a 0.1% advance in the NSE Nifty 50.

The stock has risen 56.5% in the last 12 months. Total traded volume so far in the day stood at 0.20 times its 30-day average. The relative strength index was at 53.5.

Out of 22 analysts tracking the company, 16 maintain a 'buy' rating, three recommend a 'hold' and three suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 12.3%.