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Govt allows airline to operate at 60% capacity; SpiceJet, InterGlobe shares soar 5%

Up till now, airlines were operating at 45 percent of their pre-COVID level capacity.

September 03, 2020 / 09:39 PM IST

Share price of SpiceJet gained 5.6 percent intraday and IndiGo operator InterGlobe Aviation 4.5 percent on September 3 after the central government allowed domestic airlines to operate at 60 percent of their pre-COVID level capacity.

Up till now, airlines were operating at 45 percent of their pre-COVID level capacity.

After resuming domestic passenger flights in India from the May 25, the Civil Aviation Ministry had allowed Indian airlines to operate at 33 percent of their pre-COVID levels which was increased to 45 percent from the June 26.

"While this move is sentimentally positive for airline companies, we believe that demand will remain muted in the near future and is expected to pick up post the festive season and maintain a neutral rating on the sector," Jyoti Roy, DVP-Equity Strategist at Angel Broking told Moneycontrol.