At 11.30am, SpiceJet was trading at ₹75 on BSE, up 13% from its previous close while Indigo fell 1% to ₹1,685
Indian airlines carried 5.27 million passengers in October against 3.94 million in September
MUMBAI: Shares of SpiceJet Ltd have surged nearly 50% while Indigo advanced 29% in November so far after robust data from Directorate General of Civil Aviation showing continued recovery in domestic passenger traffic.
Since 1 November till date, SpiceJet has climbed 50.30% while InterGlobe Aviation Ltd increased 28.75%. At 11.30am, SpiceJet was trading at ₹75 on BSE, up 13% from its previous close while Indigo fell 1% to ₹1,685.
Indian airlines carried 5.27 million passengers in October against 3.94 million in September.
Boeing 737Max planes, which have been grounded since March 2019, are set to return to skies with the US aviation regulator Federal Aviation Administration (FAA) on Wednesday approving 'return to service' of the aircraft with extensive fixes.
Higher capacity of 737Max (220 seats versus 180 in 737NG) along with greater fuel efficiency will boost SpiceJet's competitiveness, Edelweiss Capital said.
Hopes of an earlier than expected vaccine has also lifted investor sentiment assuming that it may help life return to normal soon all over the world.
Pfizer on Wednesday said that its covid-19 vaccine candidate was found to be 95% effective in the final analysis of the Phase 3 trial. Earlier, Moderna Inc also said that its vaccine was more than 90% effective.
Key factors that favour aviation companies, according to analysts, are an expected growth outlook over the next three years, improvement in capacity utilization in the coming months with easing lockdowns, market share gains, steady cash flow generation and benign crude prices, along with a cost benefit advantage over railways.