Aviation stocks rise as govt allows airlines to increase capacity

Indian airlines resumed domestic operations from May 25 after being grounded for two months

Shares of two listed aviation companies - InterGlobe Aviation and SpiceJet – rallied up to 5 per cent on the BSE on Thursday after the government allowed airlines to increase flights up to 60 per cent of their total capacity.

The stock of the country’s largest passenger airline InterGlobe Aviation, which operates its flights under the IndiGo brand, rallied 4.50 per cent to Rs 1,304.20 on the BSE. At 10:08 am, it was trading 1.37 per cent higher at Rs 1,265 as compared to a flat S&P BSE Sensex.

The stock of the budget carrier SpiceJet surged 5.60 per cent at Rs