SpiceJet, IndiGo shares rise up to 8% as govt lifts ban on international flights

Shares of SpiceJet and InterGlobe Aviation rose up to 8% today after the government on Tuesday (March 8) decided to resume scheduled commercial international passenger flights to/from India from March 27. InterGlobe Aviation shares gained 7.9% to Rs 1,726 against the previous close of Rs 1,600.05  on BSE.

The stock opened with a gain of 3.74% at Rs 1659.90 today. InterGlobe Aviation stock is trading lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. The large-cap stock has gained 2% in the last one year (2021) but lost 14.58% in 2022. In a month, the stock is down 23.56%.

A total of 1.14 lakh shares of the firm changed hands amounting to a turnover of Rs 19.49 crore on BSE. The market cap of InterGlobe Aviation rose to Rs 65,911 crore.

Similarly, shares of budget carrier SpiceJet gained up to 6.58% to Rs 60.75 on BSE. The aviation stock opened with a gain of 5% at Rs 59.85 today. The share is trading higher than 5-day moving averages but lower than 20-day, 50-day, 100-day and 200-day moving averages.

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The stock has lost 12.7% since the beginning of this year and has fallen 28.76% in one year. A total of 2.48 lakh shares of the firm changed hands amounting to a turnover of Rs 1.48 crore on BSE.

The market cap of SpiceJet rose to Rs 3,574 crore.

The resumption of international flights on March 27 will begin after over two years. The Directorate General of Civil Aviation (DGCA) had suspended operations of scheduled international commercial passenger services to and from India with effect from March 23, 2020, to prevent the spread of COVID-19 infections.

"After having recognised the increased vaccination coverage across the globe and in consultation with the stakeholders, the Government of India has decided to resume scheduled commercial international passenger services to/from India from 27.03.2022, i.e. start of Summer Schedule 2022," a release from the Ministry of Civil Aviation said.

India had so far allowed international flights to operate under air bubble agreements with countries.

The release added that the suspension of scheduled commercial international passenger services to and from India stands extended up to 2359 hours IST on March 26, 2022, and air bubble arrangements will accordingly be extended to this extent.

"The international operations shall be subject to strict adherence to the Ministry of Health & Family Welfare guidelines for international travel dated 10.02.2022 and as amended from time to time," it noted.