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Indian airlines fly high as August passenger traffic surges By Reuters


© Reuters. FILE PHOTO A IndiGo Airlines Airbus A320 plane takes off from Colomiers, near Toulouse in France on October 19, 2017. REUTERS/Regis Duvignau/File Photo

BENGALURU (Reuters) – Shares of Indian airlines InterGlobe Aviation and SpiceJet surged on Friday after regulatory data showed that passenger growth jumped 136.6% last month as the government started to ease COVID-related travel restrictions.

India had put an end to air travel on March 2020 after the government placed restrictions in place to prevent the spreading of the coronavirus. While domestic flight resumed in May 2020 as normal, there have been some restrictions to air travel since then due to the progress of the pandemic.

Domestic airlines carried 6.7 million passengers in August, compared with 2.8 million passengers in the year-ago period, the Directorate General of Civil Aviation said on Thursday.

InterGlobe Aviation which manages India’s biggest airline IndiGo extended gains for a fourth day. Shares of SpiceJet rose to 7.9% at 81.95 rupees. That is the highest in two months.

From the previous month, IndiGo’s passenger load factor (a measure that shows how much an airline has used) increased 11.8% and SpiceJet 6.7% respectively in August.

Ronojoy Dutta was the Chief Executive Officer at IndiGo. He stated that while he expected capacity to recover to pre-pandemic levels by year’s end, however, warned that there could be a third round of infected passengers.

The stock of SpiceJet was at its lowest level in a year as the closing date, with shares of InterGlobe up around 15%.

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