The meteoric rise in shares of InterGlobe Aviation (IndiGo) has bolstered its market capitalisation rank among the airline stocks in the world. With a market cap of $11.5 billion, IndiGo occupies the 10th rank in the league table. IndiGo — the country’s largest airlines was ranked 13th at the beginning of the year.

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Shares of InterGlobe Aviation extended their rally on Tuesday to hit a fresh life-time high after the airline placed an order for 500 Airbus A320 Family aircraft. With this deal, the airlines’ total fleet has surged to almost 1000 planes and the delivery of these new aircraft is expected to be completed by the end of 2029.. The international operations of IndiGo clocked a compound annual growth rate of 25 percent between 2018 to 2022.

Over the last three months, IndiGo shares have outdone the benchmark by delivering two-fold higher returns. While IndiGo shares returned 31 percent during the last three months, the Nifty50 clocked a return of 10.4 percent during the same period.

Atlanta, Georgia-based Delta Air Lines occupies the top rank in both market capitalisation and revenues, whereas the next two ranks in market capitalisation are taken by Ryanair Holdings and Southwest Airlines Co as they command market capitalisation to the tune of a little over $20 billion. With market capitalisation of $11.5billion, Indigo is placed between Deutsche Lufthansa AG and Japan's Ana Holdings Inc, Bloomberg data showed.

Interestingly, including Indigo, four of the top 10 airlines posted losses in the last financial year with Air China reporting the highest loss of nearly $6 billion. The other two Chinese Airlines — China Southern Airlines and China Eastern Airlines Corporation also reported losses of $4.9 billion and $5.6 billion, respectively. However, IndiGo has managed to narrow down its losses to $38.1 million in FY23 from $827 million reported a year ago.

Most analysts remain bullish on the stock, with Morgan Stanley having the highest twelve-month target price of Rs 3,126 against Tuesday’s close of Rs 2437.75 apiece.