InterGlobe Aviation shares dipped as much as 4 per cent on Wednesday after media reported that Tigerair will take back 11 jet subleased to IndiGo. At 1.11 pm, shares of InterGlobe Aviation were trading 2.56 per cent down at Rs 873. The scrip opened the day at Rs 897 and has toched a high and low Rs 897.05 and Rs 860.30, respectively, in trade so far. Benchmark BSE Sensex was up 34.51 points, or 0.12 per cent, at 28,024.72.
According to the report, Tigerair will grow capacity via the returning aircrafts subleased to Indigo. Tigerair is a budget airline headquartered in Singapore. It operates services to regional destinations in Southeast Asia, China and India from Singapore Changi Airport.
However, IndiGo CEO, Aditya Ghosh later clarified to the business channel CNBC TV18 that the information related to Tigerair taking back leased planes is completely false. “Tigerair cannot take back aircrafts before end of contracted term,” he said.
Later, shares of the aviation company closed 1.95 per cent down at Rs 878.50.
For the quarter ended June 30, 2016, InterGlobe Aviation reported 7.38 per cent fall in net profit at Rs 591.77 crore against Rs 638.90 crore in the corresponding quarter a year ago. Net sales of the company jumped by 8.51 per cent year-on-year to Rs 4545.19 crore for the quarter under review against Rs 4188.88 crore in the same quarter last year. Operating profit of the company dipped by 12.32 per cent year-on-year to Rs 977.83 crore against Rs 1115.22 crore during the same period.
In the past one year, shares of InterGlobe Aviation jumped by 2 per cent to Rs 895.95 till August 23, whereas BSE Sensex gained 8.73 per cent during the same period.