Tech View: Can airline stocks fly higher or will they run out of fuel soon?

The last week's volume in SpiceJet was higher than its previous 35 weekly sessions

Shares of aviation companies have been in the spotlight of late following robust August data, which shows a 34 per cent increase in passenger traffic during the month over the volumes in July. The Street is bullish about strong passenger load factors and plans by the two listed entities to expand their network in the domestic market. What may help sustain the rally is the civil aviation ministry's order revising the capacity to 85 per cent of pre-Covid domestic flights (from 72.5 per cent) and reducing the fare cap restrictions to 15 days from 30 days earlier. READ