Home >News >India >Aviation stocks up 7% even as DGCA report shows slow passenger growth
Cash-strapped airline Jet Airways advanced 3.60 % to settle at  ₹225.85. It had touched an intra-day high of  ₹230 (Photo: Ramesh Pathania/Mint)
Cash-strapped airline Jet Airways advanced 3.60 % to settle at 225.85. It had touched an intra-day high of 230 (Photo: Ramesh Pathania/Mint)

Aviation stocks up 7% even as DGCA report shows slow passenger growth

  • Stock of SpiceJet zoomed 7.04 % to 98.10. Intra-day, it rose 14.23 % to touch a high of 104.70.
  • InterGlobe Aviation closed the counter with 0.28 % gains at 1,426.85. During the day, it was trading at 1,459.30, up 2.56 %

NEW DELHI : Aviation stocks Friday rallied up to 7 % on the BSE even as DGCA's data showed a slowdown in air passenger traffic in February.

Stock of SpiceJet zoomed 7.04 % to 98.10. Intra-day, it rose 14.23 % to touch a high of 104.70.

InterGlobe Aviation closed the counter with 0.28 % gains at 1,426.85. During the day, it was trading at 1,459.30, up 2.56 %.

Similarly, cash-strapped airline Jet Airways advanced 3.60 % to settle at 225.85. It had touched an intra-day high of 230.

As per a DGCA report released Wednesday, the number of passengers flying domestic airlines dropped to 11.3 million in February compared to 12.5 million in January.

According to Gagan Dixit, VP of Institutional Equity Research, Elara Capital, this upsurge in aviation stocks is on account of Jet Airways' financial condition as Spicejet and Indigo would benefit the most by capturing Jet's domestic market share.

Aircraft lessors of Jet Airways would find it easy to locally transfer the aircraft to SpiceJet from Jet Airways, he added.

Further, Indigo will benefit from the availability of pilots. It had been facing shortage of pilots in the past few months, he added. 

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