Stocks of aviation companies — InterGlobe Aviation, Jet Airways, SpiceJet — gained on Thursday after the civil aviation ministry decided to remove the fare caps imposed when flights resumed after COVID lockdowns.
Shares of IndiGo's parent company, InterGlobe Aviation, rose 2.1 percent, and touched an intraday high of Rs 2,080.8 on Thursday. Jet Airways stock jumped 1.2 percent, and SpiceJet was 6.8 percent up.
The stock of Global Vectra Helicorp, India's largest private helicopter company, however, was down 3.9 percent.
On Wednesday, the ministry said that after a review of the status of scheduled domestic operations viz-a-viz passenger demand, it had been decided to remove the fare bands notified from time to time with effect from August 31.
The ministry reiterated that airlines and airports should ensure that the guidelines to contain the spread of COVID are strictly adhered to, and COVID appropriate behaviour is enforced strictly during travel.
The government had implemented fare caps at the onset of the COVID pandemic to prevent any sudden surge or decline in airfares.
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