SpiceJet dipped 8 per cent to Rs 72.50, while Jet Airways slipped 4 per cent to Rs 237 in the intra-day trade, after the Directorate General of Civil Aviation (DGCA), India’s aviation regulator, grounded Boeing 737 MAX planes following the fatal crash of a plane of the same model in Ethiopia that killed 157 people.
According to a PTI report, IndiGo, the country's largest airline in terms of market share, announced a three-day special Holi sale across its domestic and international network for travel between March 19 and September 28.
agency also reported that IndiGo is offering jobs to pilots of Jet Airways along with compensation for overdue salaries from the cash-strapped full service airline.
Analysts at Elara Capital reiterate Buy rating on the stock with a target price of Rs 1,471 on margins recovery from increase in airfares, drop in crude oil prices and reduction in capacity by Jet Airways.
“Management indicates IndiGo’s long-term strategy is to first focus on trunk routes, then on tier-2 city routes and then on international routes. Subsequently, we expect higher share of A321Neos on fleet addition for international routes during FY20 that bodes well for domestic market as industry’s supply addition would slow down,” the brokerage firm said in a quarterly update.
Analysts at JP Morgan expect IndiGo to have long-term structural benefits being the largest domestic airline with around 43 per cent market share, growing low cost / unbundled international business and lowest cost structure amongst domestic operators.
The strong fleet addition program is likely to provide volume compounding over the next five years. For the near term, however, "we are cautious on profitability margins as yield environment has been volatile and we are yet to see the company return to erstwhile spreads," the brokerage firm said in a report dated March 9 with ‘underweight’ rating on the stock.