JOIN USCoronavirus: Aviation stocks tumble up to 6.5% after suspension of all commercial passenger services till May 3
Airline stocks on Wednesday tumbled up to 6.5 per cent after the government extended the lockdown to May 3 leading to the subsequent suspension of all commercial passenger services till then.
InterGlobe Aviation shares plunged 6.55 per cent to Rs 998.25 on the BSE. SpiceJet also declined 4.92 per cent to Rs 46.30 -- its lower circuit.
India had imposed a 21-day lockdown from March 25 to curb the spread of the coronavirus pandemic. Consequently, all domestic and international commercial passenger flights were suspended for this time period.
After the announcement of the extension of lockdown till May 3, aviation regulator Directorate General of Civil Aviation (DGCA) issued a circular stating all international, as well as domestic flights, will remain suspended during the lockdown.
Within hours of the government extending lockdown to May 3, budget carrier IndiGo said it will resume flight services in a phased manner from May 4.
Announcing that all its flights are cancelled till May 3, IndiGo said it is in the process of cancelling the reservations. "Your ticket amount is protected in the form of credit shell in the PNR, which can be utilised within one year of the issued date."
Gurugram-based SpiceJet also said the amount from the cancelled ticket will be maintained in a credit shell.