More gains ahead for aviation stocks SpiceJet and IndiGo

Street has upgraded earnings on the back of rising fares, stable rupee and higher market share

Aviation stocks SpiceJet and Interglobe Aviation have gained between 17 per cent and 23 per cent since the start of March, on the expectation that lower competition, higher fares, and measured capacity addition should yields high. The two airlines are expected to benefit from the problems plaguing Jet Airways, which have resulted in the grounding of half the company’s fleet. 

Both companies have gained market share at the expense of Jet Airways. While the troubled airline’s market share at the end of February fell over 530 basis points to 11 per cent as compared to the year-ago period, IndiGo’s increased by