The Ministry of Civil Aviation on Saturday has increased the cap on airline capacity from 72.5% to 85% with this it has tweaked the price cap formula letting airlines set fares for travel beyond fifteen days.
Till now price caps were applicable on tickets up to 30 days from the booking date.
According to the Directorate General of Civil Aviation (DGCA), data released on Thursday said that around 6.7 million passengers took to the skies in August 2021 as compared to 5.01 million in July 2021.
Domestic air traffic was up 34% to 6.7 million in August on a sequential basis on the back of an increase in capacity to 72.5%.
The domestic air passenger traffic has shown significant growth in the month of August 2021 with the easing of lockdown restrictions following the decline in covid-19 cases, which gave confidence to more people to travel by air.
In the month of August, IndiGo ferried 3.82 million passengers to report a 57% market share and 74% PLF. Whereas, SpiceJet carried 0.58 million passengers during the month registering a 79.6% PLF and 8.7% market share.
Meanwhile, benchmark indices trading in the red zone with the Sensex slipped over 83 points at 58,932.53 while, the Nifty index below 17,600, down 53 points.
Interglobe Aviation Ltd is currently trading at Rs2,166.85 down by Rs30.55 or 1.39% from its previous closing of Rs2,197.40 on the BSE.
SpiceJet Ltd is currently trading at Rs80.75 up by Rs2.2 or 2.8% from its previous closing of Rs78.55 on the BSE.