Civil Aviation Ministry’s move to withdraw the restrictions on ticket prices it had imposed two years ago due to the COVID-19 pandemic has led to a rise in share prices of domestic airlines today.
Domestic airlines including IndiGo, SpiceJet Ltd, Air India, Go First, and Vistara can now price tickets freely.
IndiGo’s parent company InterGlobe Aviation Ltd’s stocks rose as much as 2.3% to INR 2,084.6 per share, while rival SpiceJet Ltd’s jumped as much as 7% to INR 47.9 a share.
The government had imposed a minimum and maximum band based on flights’ duration to prevent ticket prices from spiking once restrictions on air travel eased.
Meanwhile, competition in the Indian aviation space is expected to heat up with the launch of Akasa Air and revival of Jet Airways.
The upcoming festival season is expected to boost demand for air travel, with passenger numbers already reaching pre-pandemic levels. High fuel costs, however, continue to be a dampener.
