Shares of all three listed aviation companies – Jet Airways (India), InterGlobe Aviation (which run IndiGo) and SpiceJet – rallied 5% on BSE in intra-day trade after the domestic air traffic first time cross the 100-million mark in 2017.
Jet Airways (India) has surged 5% to Rs 824, while InterGlobe Aviation was up 4% to Rs 1,244, and SpiceJet by 2% at Rs 125 on BSE in intra-day deal on Tuesday.
At 11:43 AM; these three stocks were trading 1% to 3% higher as compared to 0.65% rise in the S&P BSE Sensex. In past one month, the aviation shares had underperformed the market by gaining less than 5% till Monday. SpiceJet had slipped 18% against 6% rise in Sensex during the period.
According to Business Standard report, the domestic air traffic surged 17.4% to cross the 100-million mark in 2017, a first for Indian skies.
Low fares, addition of new flights and economic growth have induced air travel in the country that has recorded double-digit passenger growth for 40 consecutive months.
Last month, airlines flew 11.2 million passengers, 17.8% more than the same period in 2016. The load factor in 2017 was 86.1% as against 83.9% in 2016.business-standard