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NEW DELHI: Shares of SpiceJet (up 9.77 per cent) and IndiGo (up 1.13 per cent) ruled firm on Friday amid reports that with disruption in Jet Airways, there is a good chance that other aviation firms may gain market share.
Jet Airways(India) (up 3.12 per cent) on the other hand was also up amid hopes related to its resolution plan.
Shares of low-cost carrier SpiceJet had surged as much as 14.20 per cent to highest since July 30.
Market expert Ajay Bagga in interaction with ETNow said, “Both the incumbents (SpiceJet and InterGlobe) are looking attractive given their market shares will go up and their pricing power gets increased and that really enables them to start harvesting good cash out of their franchises.
Aviation in that limited sense is looking good, but let us wait and watch what happens on Jet, that will really determine the contours of the sector in the next two to three quarters.”
Also, domestic airlines' passenger traffic rose 5.62 per cent in February from January, data from the Directorate General of Civil Aviation showed.
Passenger load factor for SpiceJet rose to 94 per cent in Feb from 90.9 per cent in Jan, while InterGlobe Aviation Ltd-owned IndiGo's load factor rose 88.4 per cent vs 86.4 per cent in Jan.
Load factor for cash-strapped Jet Airways Ltd rose to 89.4 per cent from 86.1 per cent.
