Aviation stks in focus; InterGlobe Aviation hits 52-wk high; SpiceJet up 6%

The ministry had said last week that the Indian airlines can operate maximum 60% of their pre-Covid domestic passenger flights till February 24 next year due to the prevailing coronavirus situation

Shares of aviation companies were in focus on Thursday with InterGlobe Aviation hitting a fresh 52-week high, while SpiceJet gaining 6 per cent in the intra-day trade on the BSE after the government increased domestic flights' limit to 70 per cent of pre-Covid levels from 60 per cent.

The ministry had said last week that the Indian airlines can operate maximum 60 per cent of their pre-COVID domestic passenger flights till February 24 next year due to the prevailing coronavirus situation.

The Civil Aviation Ministry had said on September 2 that the Indian airlines can operate maximum 60 per cent of their pre-Covid domestic passenger flights due to the prevailing coronavirus situation, the report said. CLICK HERE TO READ FULL REPORT

Shares of InterGlobe Aviation-run IndiGo airline hit a fresh 52-week high of Rs 1,650, up 2 per cent on the BSE in the intra-day trade today. The stock has outperformed the market by surging 17 per cent in the one week, as against 5 per cent rise in the S&P BSE Sensex. In the past three months, it has rallied 60 per cent as compared to a 13 per cent gain in the benchmark index.

In July-September quarter of FY21 (Q2FY21), the company's standalone net loss narrowed to Rs 1,195 crore as revenue picked up. The airline had reported a record loss of Rs 2,840 crore during the June quarter of FY21 amid suspension of air travel owing to Covid-19 pandemic. In the year-ago quarter, the loss stood at Rs 1,060 crore.

Shares of SpiceJet, on the other hand, advanced 6 per cent to Rs 57.10 in the intra-day deal, gaining 12 per cent in the past two trading days. No-frill carrier on Wednesday reported a consolidated loss of Rs 106 crore for Q2FY21 as against a loss of Rs 461 crore during the same period of the previous year.

"Despite Covid‐19 continuing to pose serious operating challenges we have managed to significantly cut down our net loss in Q2 much like the previous quarter," said Ajay Singh, chairman and managing director (MD) of SpiceJet.

He added that though Covid‐19 cases continue to rise, he believed the worst is behind the company. "The pandemic gave us the unprecedented opportunity to further cut down on costs and re‐structure our contracts and aircraft leases to align with current operating environment while at the same time operating the full schedule as was permitted. What we have managed to do in the last few months will have a significant long-term impact," he said.