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The stock prices of two major Indian airlines, IndiGo and SpiceJet, on Friday experienced a significant decline following the recommendation by a parliamentary panel to implement route-specific capping of airfare.

The proposal also included the establishment of a distinct regulatory body to oversee and manage air ticket prices, responding to mounting customer grievances regarding escalating airfares.

The parliamentary panel expressed dissatisfaction with the current self-regulation efforts by airlines, citing the inadequate response from the civil aviation ministry on the issue of airfare regulation.

The report, presented by the Parliamentary Standing Committee on Transport, Tourism, and Culture, scrutinised the government's actions regarding its recommendations on airfare fixing.

As the news broke, market reaction was swift and by 2 p.m., shares of InterGlobe Aviation, the parent company of IndiGo, were down by 0.83 per cent, trading at Rs 3,104.15 on the Bombay Stock Exchange (BSE).

Similarly, SpiceJet witnessed a notable decline of over 3.87 per cent, with its shares priced at Rs 67.20 on the BSE.