We study a version of the Craig interpolation theorem formulated in the framework of the theory of institutions. This formulation proved crucial in the development of a number of key results concerning foundations of software specification and formal development. We investigate preservation of interpolation properties under institution extensions by new models and sentences. We point out that some interpolation properties remain stable under such extensions, even if quite arbitrary new models and sentences are permitted. We give complete characterisations of such situations for institution extensions by new models, by new sentences, as well as by new models and sentences, respectively.