Shares of InterGlobe Aviation and SpiceJet rose over 4% in early trade, on Friday, after Directorate General of Civil Aviation (DGCA) allowed airlines to charge 10-30 per cent more for domestic flights.
SpiceJet stock gained 7.18% to Rs 94 against previous close of Rs 87.70 on BSE. While InterGlobe Aviation opened with a gain of 4.73% at Rs 1,704 against previous close of Rs 1,627.10.
The revised fares come as a respite to the airline industry, which has been battered by COVID-19 restrictions. SpiceJet posted a standalone loss of Rs 57 crore for the quarter ended December’20 amid limited operations and muted demand. On the other hand, Interglobe Aviation reported a consolidated net loss of Rs 620 crore.
The minimum and maximum limits on fares that airlines can charge from passengers and this fare cap order is effective until March 31, the ministry ordered.