Indian airline stocks soar as government allows full flight capacity
BENGALURU - Shares of Indian airline operators jumped on Wednesday after the country's civil aviation ministry allowed domestic flights to fly at full capacity from Oct. 18, lifting pandemic-led restrictions ahead of the festive season.
InterGlobe Aviation, which runs India's largest airline IndiGo, and SpiceJet Ltd rose as much as 4.8% and 5.9%, respectively, to their highest levels since mid-September.
India's aviation industry has been among the worst hit by the COVID-19 pandemic, with airlines losing billions of dollars since operations were halted or restricted since 2020.
With COVID-19 cases falling and vaccination rates increasing, India has started easing travel restrictions over the past few months.
Passenger growth jumped 136.6% in August from a year earlier after the government relaxed some curbs, regulatory data showed.
IndiGo's shares have gained about 18.3% for the year as of last close, while SpiceJet's stock is down about 21% during the same period.
(Reporting by Vishwadha Chander in Bengaluru; Editing by Sriraj Kalluvila)
