SpiceJet, InterGlobe Aviation shares dive for 7th consecutive day

Shares of SpiceJet and InterGlobe Aviation tumbled up to 46 per cent in the past week as the airline industry remains hit by poor demand in view of the coronavirus outbreak.

SpiceJet stock plunged 46.25 per cent in seven trading sessions and is now at its 52-week low of Rs 34.10 on the BSE. On Thursday, it plunged 9.91 per cent at close.

Shares of IndiGo's parent InterGlobe Aviation dived 25.16 per cent in seven days. On Thursday, it fell 4.56 per cent to close at Rs 908.85.

The airline industry is one of the worst hit sectors by the outbreak. Country's largest carrier Indigo has announced pay cuts and debt-laden Air India too is considering a similar step.

GoAir has asked many employees to go on leave without pay on a rotational basis and has also terminated services of expat pilots.

All Indian airlines will report significant losses in the first quarter of this year and may initially ground around 150 planes as the shock from the coronavirus pandemic will be "far deeper and much longer", according to a report.

Aviation advisory firm CAPA India on Wednesday said consolidated losses are estimated to be in the range of USD 500-600 million for the quarter, excluding Air India.

In a report, it said that some airlines may choose to temporarily shut down their operations by design on the basis that demand is so low that such action would result in reduced losses than if they continue to operate.

In the wake of significant reduction in services, the report said Indian carriers might initially ground around 150 aircraft, and the number is expected to increase as more domestic operations are curtailed over the coming weeks.

Many countries, including India, have imposed travel restrictions.