Domestic Airlines’ Shares Get A Boost As Cap On Ticket Prices Lifts

Indian domestic airline shares rose on Thursday, the day after the Civil Aviation Ministry said it would delete the ticket price restriction two years ago due to Pandemi Coronavirus. Domestic Airlines Indigo, Spicejet Ltd, Air India, Go First and Vistara – a joint venture between Tata Group and Singapore Airlines – can now give ticket prices freely.

Indigo Interglobe Aviation Ltd’s Top Airlines Stocks rose by 2.3 percent to ₹ 2,084.6 per share while Spicejet Ltd’s small rival jumped as much as 7 percent to ₹ 47.9 per share. The government has imposed a minimum and maximum ribbon based on flight duration to prevent ticket prices from spiking after reduced air travel restrictions. Competition in the Indian aviation room is expected to heat up with the launch of Akasa Air and the awakening of Jet Airways. The upcoming festival season is expected to increase demand for air travel, with the number of passengers already touching the pre-bound level. But high fuel costs continue to be a damper.