Aviation stocks plunge nearly 5 pc on coronavirus jitters

Shares of airline companies fell as much as 5 per cent on Friday amid concerns over coronavirus outbreak taking a toll on the travel industry.

Massive sell-off in the stock market was triggered by the rising coronavirus cases.

Shares of InterGlobe Aviation - the parent of IndiGo - plunged 4.80 per cent to Rs 1,300 on the BSE. Intra-day, the stock dropped as much as 9.99 per cent to Rs 1,229.75.

SpiceJet stock cracked 6.06 per cent to a low of Rs 82.10 during the day. It closed 4.69 per cent lower at Rs 83.30.

Defunct airline Jet Airways (India) hit its lower price band losing 4.84 per cent at Rs 24.55 during the session. It settled at Rs 24.70, down 4.26 per cent.

Last week, the International Air Transport Association (IATA) said there was a potential 13 per cent full-year loss of passenger demand for carriers in the Asia-Pacific region due to COVID-19.

"Considering that growth for the region's airlines was forecast to be 4.8 per cent, the net impact will be an 8.2 per cent full-year contraction compared to 2019 demand levels," the grouping had said on the basis of an initial assessment.

According to rating agency Icra, the outlook for India's aviation industry remains negative in the wake of the coronavirus outbreak, which has resulted in many international passengers cancelling their travel to South East Asian countries.

The extent of impact of the flight/ ticket cancellations on the profitability of the domestic airlines would, however, vary depending on the airlines' presence in these routes.