Aviation stocks sizzle; SpiceJet hits upper circuit

Airline companies have been heavily impacted by COVID-19 pandemic. Aviation stocks were considered to be money losing stocks with low hopes for revival. But as new announcements are coming, the trend has been reversed as on Thursday, InterGlobe Aviation gained by more than eight per cent while, SpiceJet hits its upper circuit of five per cent.

Indian Civil Aviation Ministry announced that the operations of domestic civil aviation will recommence from May 25 in a calibrated manner. The flight operations were previously halted since March 25, 2020 to curb the spread of COVID-19. Additionally, the ministry also informed that special operating procedures (SOPs) for passenger movement were separately being issued. Previously, only flights for medical services, air ambulance as well as for security purposes were allowed for domestic as well as international air travel. However, now, since the country has been closing its end date for lockdown 4.0, various airlines are accepting bookings for domestic flights beginning June 1 while, bookings for the international flights are closed till June 15, 2020. The decision of resuming domestic civil aviation operations comes as a relief to the heavily low revenue burdened airline companies.

Reacting to this development, on Thursday morning, the stock of InterGlobe Aviation rocketed high up and was trading at Rs 988.45, up by 8.39 per cent or Rs 76.55 per share. The stock’s 52 week high is Rs 1,911 and 52-week low is Rs 765.05 on BSE. While the stock of SpiceJet locked in at its upper circuit of Rs 42.95, which is by gaining 4.88 per cent or Rs 2 per share. The stock’s 52-week high is Rs 156.90 and 52-week low is Rs 30.80 on BSE.