Aviation stocks take off

about 9 months ago
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Aviation stocks have much to cheer about today. Indigo opened 3.5% higher and rose to an intraday high at Rs.1726.45, going up 8%. Its 10% UC of the day stands at Rs.1760.05. Spicejet is also doing well, rising 7% to Rs.60.75 while its 20% UC stands at Rs.68.40.

These stocks have zoomed up after the Govt yesterday, after years, lifted the ban on commercial flights and announced resumption from 27th March. The air transport bubbles will be replaced with regular scheduled flights, which is great news for travelers as well as aviation companies.

Airfares which are sky high right now are expected to correct post this and volume of travel too is expected to go up.

The demand for travel is high but supply was low plus the rising crude price pushed up the prices; this situation is now expected to get corrected and will aid the airlines better their earnings with full services back in order.

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