After reeling under the coronavirus-induced lockdown and sharp losses for much of the year, aviation space is buzzing once again, fuelled by optimism on the COVID-19 vaccine front. InterGlobe Aviation (the owners of the IndiGo) and SpiceJet shares are rising to their pre-COVID levels steadily. In fact, both domestic aviation company’s stocks have rallied the most this month after March.
Since November 1 till date, shares of IndiGo have surged 33 percent while SpiceJet’s have jumped 50.5 percent to current levels this month, respectively. The recent optimistic news on the vaccine front and the upcoming festive season remain two significant factors behind the rally in the aviation space.
Last week, the Civil Aviation Minister Hardeep Singh Puri announced to increase the domestic flights normal capacity to 70 percent from the previous 60 percent. Puri while addressing participants virtually also said that he is confident that by end of the year, India’s aviation sector will be back to pre-Covid levels, which remained another big reason for the buying sentiment in aviation stocks.
Furthermore, the number of passengers traveling daily has also increased. Indian airlines carried 5.27 million passengers in October against 3.94 million in September.