Aviation stocks in focus as Centre raises domestic flights cap to 80%; Indigo, SpiceJet stock zooms 6-9%

The Centre has increased the domestic flights' cap to 80% from the existing 70%.

Dec 04, 2020 09:12 IST India Infoline News Service

Aviation stocks were among the most preferred stocks of the Friday's bull session. Investors cheered this sector as the Centre has increased the domestic flights' cap to 80% from the existing 70%. This would mean more flight operations, more passenger traffic and hence further push to airlines earnings.

Civil Aviation Minister Hardeep Singh Puri tweeted saying that the @MoCA_GoI is now allowing domestic carriers to increase their operations from existing 70% to 80% of pre-COVID approved capacity.

Puri further added that the domestic operations recommenced with 30K passengers on 25 May & have now touched a high of 2.52 lakhs on 30 Nov 2020.

At around 2.52 pm, SpiceJet was trading at Rs88.50 per piece up 8.79% on Sensex. The stock has gained to an intraday high of Rs91.85 per piece.

Meantime, Interglobe Aviation (Indigo) was performing at Rs1743.90  per piece up Rs99.45 or 6.05%. The stock has touched an all-time high of Rs1751.50 per piece.

Indigo stock was in the fast lane on Friday, as the airline removed leave without pay for all staffers and also plans to call entire workforce back starting January 1, 2021. 

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