The aviation industry is struggling to stay in the air as Omicron spread takes a toll on crews. This holiday season, thousands of flights have been scrapped as the new virus continues to rise, while severe weather conditions in the US also played a major role.
On Wednesday, Indian aviation stocks were under pressure amid flights cancellation news globally. India has extended the suspension in the scheduled international passenger flight operations till January 31, 2021. The country currently has an air bubble agreement with 34 countries. Due to the Omicron surge, delay in removing the suspension is most likely a scenario that will continue to delay revival in the domestic industry.
At around 1.18 pm, Interglobe Aviation was trading at Rs2001.70 per piece flat compared to the previous closing but in the red. The stock has touched an intraday low of Rs1968.20 per piece earlier today.
SpiceJet was performing at Rs67 per piece down by 1.5% on Sensex. The stock was near the day's low of Rs66.80 per piece.
Globally, nearly 12,000 flights have been cancelled as Omicron virus cases continue to rise even leading airliners crews to isolation. The US witnessed the most cancellation due to the rise in the new variant cases and severe weather conditions.
As per FlightAware data, so far today, about 2,102 flights have been cancelled globally among which 671 cancellations belonged in or out of the US. On Tuesday, 3,127 flights were cancelled with the US witnessing 1,289 flights cancellation.
As per the website, the majority of the flights were cancelled by Chinese airlines. China Eastern, Air China, United (UAL), SkyWest and Lion Air were at the top of the chart in flights cancellation.
29/12/21 IIFL Securities
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