Aviation Stocks Surge As Flights Increase

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aviation - aviatorsbuzz
File Picture of Bombay Stock Exchange building in Mumbai. Source: Wikipedia

Shares of InterGlobe Aviation and SpiceJet surged over 4 percent on Thursday after the government allowed airlines to operate with 60 percent capacity in the domestic segment.

Both SpiceJet and IndiGo’s shares rose as much as 4.5 percent on the BSE.

CNBCTV18 reported that at 9.30 am, InterGlobe Aviation shares traded 2.66 percent higher at Rs. 1,281.10 per share while SpiceJet traded 3.24 percent higher at Rs 52.50 per share on the BSE.

The news report linked this surge to the government’s decision to allow domestic flight operations which resumed on May 25 after a two-month shutdown to mount 60 percent of flights from the 45 percent capacity that had been allowed.

The Ministry of Civil Aviation (MoCA) said that domestic air traffic figures crossed 1,00,000 passengers from around 40,000 passengers in the month of May. The number of daily flight departures have gone up to over 1,100 from around 500 in three months.

All this comes in the backdrop of the state governments starting to ease restrictions and do way with quarantine norms for travelers.

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