IndiGo Share Price Target: India's largest domestic carrier is facing pressure after the company announced it would discontinue its flights to Manchester from August 31, citing escalating operational costs and airspace restrictions.

Additionally, the airline stated that it will return one Boeing 787-9 Dreamliner aircraft leased from Norse Atlantic Airways. This move reflects ongoing financial and operational pressures on the company.

IndiGo Share Price Target 2026

Morgan Stanley Maintains Overweight Rating

Despite near-term concerns, global brokerage firm Morgan Stanley has maintained an "overweight" rating on the stock. The firm also reiterated a price target of Rs 5,844, implying an upside potential of 29.5 per cent.

Government Support Measures for Aviation Sector

The brokerage highlighted the Indian government's approval of a one-time budgetary support of up to Rs 100 billion in the form of interest-free advances to oil marketing companies. The aim is to stabilise aviation turbine fuel (ATF) prices for scheduled airlines.

Under the scheme, oil marketing companies will be compensated for losses when aviation fuel prices exceed benchmark levels, with a true-up mechanism once prices normalise. The initiative covers both domestic and international operations, enabling more stable ATF pricing for up to three years.

Morgan Stanley expects this to provide near-term cash flow support, though it sees a neutral long-term impact.

InterGlobe Aviation Share Price, IndiGo Share Price

However, the Sensex-listed stock settled over 1 per cent higher at Rs 46.30, at Rs 4,512.80 on the BSE in the previous session. The price during the session went as high as Rs 4,562.70, reflecting an upside of over 2 per cent.

IndiGo Stock Performance

IndiGo's stock performance shows mixed short-term trends but strong long-term gains. In the past week, the stock declined 1.21 per cent, while over two weeks it rose 5.85 per cent and gained 5.06 per cent in one month.

However, three-month performance was largely flat. Since January 1, the stock is down 11.67 per cent, with a 6-month decline of 19.31 per cent and a one-year drop of 16.12 per cent.

Longer-term returns remain strong, with a 4.98 per cent gain over two years, 89.08 per cent over three years, 155.59 per cent over five years, and 355.26 per cent over ten years, indicating strong long-term wealth creation.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)