SpiceJet and Indigo share prices: HSBC highlights key pointers in the Aviation Sector
Both Spicejet and Indigo, as well as other national and international airlines have been suffering ever since the imposition of corona pandemic linked lockdown. Needless to say, Spicejet share price or that of Indigpo have suffered in tandem with investors being stuck between a rock and a hard place. However, green shots are visible and investors can rejoice a little. HSBC says demand recovery has been slow but declining COVID-19 cases and vaccines could boost demand. The Government of India recently increased the flight capacity limit to 80% which could help the industry reduce losses slightly.
The Government of India’s Ministry of Civil Aviation raised the domestic capacity limit from 70% to 80% on 3 December. HSBC thinks the industry should be able to fly this incremental capacity: Reuters