September 25, 2022
Business Featured Latest News

Domestic Airlines’ Shares Get A Boost As Cap On Ticket Prices Lifts

A day after the civil aviation ministry announced it would lift the price caps on tickets it had put in place owing to the coronavirus outbreak two years prior, shares of domestic Indian carriers increased.

Tickets can now be priced freely by domestic carriers IndiGo, SpiceJet Ltd, Air India, Go First, and Vistara, a joint venture between the Tata Group and Singapore Airlines. InterGlobe Aviation Ltd., the parent company of popular airline IndiGo, had its shares rise as much as 2.3% to 2,084.6 per share, while SpiceJet Ltd., a lesser competitor, saw its shares rise as much as 7% to 47.9 per share.

To prevent ticket prices from skyrocketing after limitations on air travel were lifted, the government mandated a minimum and maximum band based on the length of the flight.

With the opening of Akasa Air and the rebirth of Jet Airways, the competition in the Indian aviation market is anticipated to intensify.

Air travel demand is anticipated to increase throughout the forthcoming festival season, with passenger counts already above pre-COVID levels. However, high fuel prices continue to be a drag.

Picture Courtesy: Google/images are subject to copyright

Share

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *