Aviation stocks tumble; SpiceJet, IndiGo stocks drop

According to the media reports, India is planning a rescue package worth as much as $1.6 bn for the aviation sector, which has been battered after the coronavirus outbreak forced countries to close borders and brought air travel to a near-halt.

Mar 19, 2020 05:03 IST India Infoline News Service

Aviation stocks were trading under pressure on Thursday, with SpiceJet and IndiGo slipping for the seventh straight day. According to the media reports, India is planning a rescue package worth as much as $1.6 bn for the aviation sector, which has been battered after the coronavirus outbreak forced countries to close borders and brought air travel to a near-halt.

The Finance Ministry is considering a proposal that includes the temporary suspension of most taxes levied on the sector, including a deferment of aviation fuel tax, said the sources, the media statement added.

Meanwhile, airlines may need a bailout of more than $200 billion, the International Air Transport Association (IATA) estimates. CAPA estimates that Indian airlines, excluding state carrier Air India, will report losses of up to $600 million for the January-March quarter, which could worsen if demand continues to fall.

Stock view:
SpiceJet Ltd is currently trading at Rs34.10, down by Rs3.75 or 9.91% from its previous closing of Rs37.85 on the BSE.

Interglobe Aviation Ltd is currently trading at Rs924.50, down by Rs27.75 or 2.91% from its previous closing of Rs952.25 on the BSE.

Related Story