Healthy travel demand lifts aviation stocks

Mumbai: Airline stocks have been moving northwards in the last month on the hope that aviation industry could be well on the path to recovery.
In the first quarter ended June 30, the airlines' operational income has improved, and with the growth in air travel demand, the airlines say the future outlook looks positive.
Since July 2, Jet Airways stock has risen 27 per cent to close at Rs 674.60. During the same period, Kingfisher Airlines was up 6.6 per cent to close at Rs 53.30 and SpiceJet was up 9.4 per cent to close at Rs 62.05.
“Strong growth in (passenger) traffic and improved performance at operational level is reflecting in the stock prices of airline companies,” said Senior Analyst, Mr Mahantesh Sabarad, from Fortune Equity Brokers India.
Another analyst from an Indian brokerage firm said that yields are stable and there are signs of recovery in the industry, which are pushing up the stock prices.
Domestic airlines flew 45.04 lakh passengers in June, up almost 22 per cent against June 2009. In May, the airlines flew 47.85 lakh passengers which was again almost 22 per cent increase compared to the same period last year.
02/08/10 Business Line

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Categories: Indian Aviation- In General Aug 2010