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SpiceJet, InterGlobe Aviation shares rise over 3% on nod to operate at 65% of pre-Covid capacity

SpiceJet, InterGlobe Aviation shares rise over 3% on nod to operate at 65% of pre-Covid capacity

Share of InterGlobe Aviation rose 3.02% to intraday high of Rs 1,810 and stock of budget carrier SpiceJet soared 3.66% to Rs 82 on BSE

InterGlobe Aviation stock has gained 3.63% in the last 2 days InterGlobe Aviation stock has gained 3.63% in the last 2 days

SpiceJet and InterGlobe Aviation stocks rose today after the civil aviation ministry allowed domestic airlines to operate at 65 per cent of pre-Covid capacity.

Share of InterGlobe Aviation touched an intraday high of Rs 1,810, rising 3.02% against previous close of Rs 1,757.

InterGlobe Aviation stock has gained 3.63% in the last 2 days. The airline stock is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The stock has gained 73.89% in a year and risen 3.63% since the beginning of this year.

Total 0.72 lakh shares changed hands amounting to turnover of Rs 13.09 crore on BSE.

Market cap of InterGlobe Aviation rose to Rs 68,739 crore on BSE.

Stock of Budget carrier SpiceJet soared 3.66% to Rs 82 against previous close of Rs 79.10 on BSE.

The stock has gained 2.05% in the last 2 days. The share trades higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages.

The share has gained 58.72% in one year but fallen 16.59% since the beginning of this year.

The decision has been taken to cater to the increase in domestic air travel as states ease the Covid-induced curbs. "Attention Travellers! Considering the increasing passengers' demand for domestic air travel, the capacity of domestic civil aviation operations will be increased to 65% from 50% from the date of issue of this order and up to 31.07.2021 or until further orders," the aviation ministry order said.

On June 1, the ministry had capped the seating capacity for domestic airlines to prop up smaller carriers amid low demand for air travel due to the second Covid-1 wave.

The capacity utilisation was reduced from 80 per cent to 50 per cent from June 1 after the air travel demand hit rock-bottom in May.

Initially, the Centre had allowed the carriers to operate not more than 33 per cent of their pre-COVID domestic services when the Centre restarted scheduled domestic flights in the country on May 25 last year following a two-month hiatus.