Aviation stocks rise as Govt allows airline to operate at 60% capacity
Published On: Thursday, September 3, 2020 | By: Team KnowMyStock
Shares of two listed aviation companies - InterGlobe Aviation and SpiceJet – rallied up to 5 % on the BSE on Thursday after the government allowed domestic airlines to increase flights up to 60 per cent of their total capacity. Shares of IndiGo jumped to trade at Rs 1,306 per share and SpiceJet, the other private listed carrier was trading at a high of Rs 53.7 per share. Up till now, airlines were operating at 45 per cent of their pre-COVID level capacity. Indian airlines resumed domestic operations from May 25 after being grounded for two months due to the lockdown to contain the Covid-19 pandemic. Air travel was the safest mode of transport due to its controlled access and complete traceability at departure, transit, and arrival."While this move is sentimentally positive for airline companies, we believe that demand will remain muted in the near future and is expected to pick up post the festive season and maintain a neutral rating on the sector," said Angel Broking.
"While this move is sentimentally positive for airline companies, we believe that demand will remain muted in the near future and is expected to pick up post the festive season and maintain a neutral rating on the sector," Jyoti Roy, DVP-Equity Strategist at Angel Broking
Source: Money Control, Business India, Financial Express
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