Why IndiGo shares took off despite a loss in Q4FY20

Shares of InterGlobe Aviation Ltd, which runs the IndiGo airline, rose up to 10% on the NSE in early deals on Wednesday. This, after the firm reported a net loss of Rs873 crore for the March quarter.

What gives?

Note that the Street had estimated the company to report a higher loss. Also, IndiGo’s loss was largely due to forex fluctuation. The firm’s results could well have excited investors at a time when expectations are running quite low. Also, outlook for the aviation sector remains uncertain owing to the covid-19 pandemic.