Shares of airlines declined on Monday after domestic air traffic dipped sharply amid rising COVID-19 cases and as states imposed strigent curbs to tackle the outbreak of the second wave of the pandemic. The average number of daily flyers fell sharply while the weekly average daily domestic flight passengers stood at 1,93,000 for the week ending April 17, compared with 2,32,000 in the week ending April 10, according to a report by ICICI Securities released on Monday.
Shares of SpiceJet fell as much as 6.4 percent to its day's low of Rs 61.55 per share on BSE while InterGlobe Aviation, the operator of IndiGo airlines, shed 3.6 percent to Rs 1,526.70 apiece.
The average number of departures declined sharply to 2,130 (in the week ending on April 17) from 2,300 ( in the week ending on April 10), the report said. The number of flyers per departure declined to 90 from 101 in the respective weeks.
The rising covid cases and increasing lockdown restriction from various states will remain an overhang on air traffic, the ICICI Securities report noted.
India reported 2,73,810 new COVID-19 cases taking the total cases to 1.5 crore, 1,619 fatalities in the last 24 hours.
(Edited by : Ajay Vaishnav)