SpiceJet share price rises as much as 14% after higher February passenger traffic

By: |
Published: March 22, 2019 1:00:23 PM

SpiceJet shares rose as much as 14.2 per cent to the highest since July 30 after passenger traffic for domestic airlines surged nearly six per cent in February from last month.

spicejet, aviatio sector, aviation industrySpiceJet shares were trading at Rs 227.10, up 8.55 points, or 3.91 per cent on BSE at the time of reporting.

SpiceJet shares rose as much as 14.2 per cent to the highest since July 30 after passenger traffic for domestic airlines surged nearly six per cent in February from last month.

While passenger load factor for SpiceJet rose to 94 per cent in February from 90.9 per cent in January, InterGlobe Aviation-owned IndiGo’s load factor rose 88.4 per cent as against 86.4 per cent in January. Load factor for cash-strapped Jet Airways surged to 89.4 per cent from 86.1 per cent, Directorate General of Civil Aviation data showed.

Also read: CLSA’s Chris Wood ‘double-overweight’ on Indian shares; sees Modi returning to power

SpiceJet shares were trading at Rs 227.10, up 8.55 points, or 3.91 per cent on BSE at the time of reporting.

“A combination of supply disruption across key airline operators and increasing fares (anecdotal) resulted in one of the weakest air traffic growth prints over the past few years,” Reuters reported citing Citi’s research note.

“Passenger traffic growth slowest in five years due to increased fares. In recent months, industry capacity growth has slowed down significantly, driven by temporary problems with Pratt & Whitney, shortage of pilots, grounding of Boeing 737 Max and liquidity problem at Jet Airways,” HSBC Global Research said.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition