Aviation stocks slip on IATA report

The aviation stocks including Spicejet and Interglobe Aviation were trading lower in the early trade on Friday after IATA data showed that India slipped to fourth rank in domestic air passenger traffic in August 2019.

The International Air Transport Association (IATA) is trade association for world airlines with 290 plus airlines as registered members. Its latest data shows that the domestic air passenger traffic in August 2019 rose only by 3.7 per cent.

The IATA data showed that the country’s domestic air passenger market clocked an 8.9 percent growth in July 2019 when compared to the same month last year. However, the data also showed that the average global demand for domestic travel climbed 4.7 percent in August 2019 compared to the same month last year, and unchanged from the previous month.

In June and July 2019, the industry had clocked a growth of 7.8 per cent 8.9 per cent respectively. The rise in passenger volumes was taken positive as despite the Jet crisis, Spicejet and Indigo were able to gain the market share effectively.

The report also pointed out that the average capacity globally rose 4.6 percent and load factor increased 0.1 percentage point to 85.9 percent on the average across seven major international aviation markets.

At 12.00 hours, stocks of Spicejet and Interglobe Aviation were trading down by 1.90 per cent and 1.39 per cent respectively on BSE.