Shares of aviation firms InterGlobe Aviation and SpiceJet took off at the bourses on Friday, cheering the government s decision to increase the upper and lower cap on airfare by up to 30 per cent. In the intra-day trade, IndiGo shares jumped up to 4.7 per cent on the BSE to hit an intra-day high of Rs 1,704 apiece while those of SpiceJet soared 7 per cent to a high of Rs 94 per share. On Thursday, Ministry of Civil Aviation revised fare price band on flights with 90 to 120 minutes of duration to Rs 3,900, up from Rs 3,500 earlier. The cap on maximum chargeable fare has been raised to Rs 13,000 from Rs 10,000.
The revision in air fare price band by up to 30 per cent is a move optically in the right direction, analysts said, but will not benefit airlines much amid steadily rising oil prices. The proposal, they believe, will make a meaningful impact only if the capacity remains capped amid plateaued passenger growth. On Thursday, the Ministry of Civil Aviation revised the fare price band on flights with 90 to 120 minutes of duration to Rs 3,900, up from Rs 3,500 earlier. The cap on maximum chargeable fare has been raised to Rs 13,000 from Rs 10,000. However, the cap on airline capacity, currently at 80 per cent of the pre-Covid level, has been extended till March 31.
Interglobe Aviation Share Price Slips 2% Post Q3 Numbers; Here s What Brokerages Expect moneycontrol.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from moneycontrol.com Daily Mail and Mail on Sunday newspapers.