Indian airlines have experienced a rapid growth in stock prices following the lifting of the government’s restrictions on passenger capacity.
• IndiGo’s parent company InterGlobe Aviation saw stocks rise by more than 4.8%, while SpiceJet’s stocks increased by 5.9%, Reuters reports.
• India placed heavy restrictions on airline operations following a two months suspension in early 2020.
• Only partial resumption of flights was permitted, with airlines operating at no more than 50% of their capacity.
• While restrictions were eased incrementally, conditions remained strict.
• As a result, the largest Indian carriers, including both IndiGo and Vistara, suffered heavy losses, and the country’s aviation market was slow to recover.
• The latest change to restrictions coincides with India’s holiday season.
On October 12, 2021, India’s Ministry of Civil Aviation announced that, from October 18, 100% seat capacity will be permitted as the number of COVID-19 infections decreases and the vaccination program moves forward.
Information source Aerotime Hub.
Stay tuned and updated with Aviation a2z. Have a good day ahead!