Stock Market update: InterGlobe Aviation Ltd shares up by 2% despite 55% drop in air traffic

However, the shares of Jet Airways & SpiceJet dropped.

Since the COVID-19 pandemic, the aviation industry of India has seen a decline in air traffic. However, despite the decline in air traffic, InterGlobe Aviation continues to trade in the green. Today, the share price of InterGlobe Aviation, IndiGo, hit at Rs. 2,086.80 per equity share and representing an increase of 2.57% on January 12, 03:05 PM IST. Whereas, the previous low was at Rs. 1960.15 per share on January 6, 2022.

On contrary to IndiGo, the shares of Jet Airways, Spice Jet and Vistar Amar (Vistara) have dropped.
Vistar Amar’s today’s trade opened with Rs. 77.40 per share, representing a surge of 6.04%. However, the share price fell drastically to Rs. 71 per equity share.

The share price of SpiceJet dropped to Rs. 63.80 per share with a decline of 0.31%. Whereas, the share price of Jet Airways dropped to Rs. 88.15 per equity share and with a decline of 0.84%.

According to the Indian Aviation Industry Report, The civil aviation industry in India has emerged as one of the fastest-growing industries in the country during the last three years. India has become the third-largest domestic aviation market in the world and is expected to overtake the UK to become the third-largest air passenger market by 2024.

Furthermore, India’s passenger traffic stood at 115.37 million in FY21. Domestic passenger and international passenger traffic declined at a CAGR of -9.02% and -28.64%, respectively, from FY16 to FY21, owing to COVID-19-related restrictions on flights in FY21. In FY21, airports in India pegged the domestic passenger traffic to be 105.2 million, a 61.7% YoY decline, and international passenger traffic to be 10.1 million, an 84.8% YoY decline, over the fiscal year ended March 31, 2020, as per IATA.

 

 

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