Govt allows airline to operate at 60% capacity
Up till now, airlines were operating at 45 percent of their pre-COVID level capacity.
After resuming domestic passenger flights in India from the May 25, the Civil Aviation Ministry had allowed Indian airlines to operate at 33 percent of their pre-COVID levels which was increased to 45 percent from the June 26.
"While this move is sentimentally positive for airline companies, we believe that demand will remain muted in the near future and is expected to pick up post the festive season and maintain a neutral rating on the sector," Jyoti Roy, DVP-Equity Strategist at Angel Broking told Moneycontrol.
He said markets would be keenly awaiting data for the domestic aviation industry for August which would be released in a few days by the Directorate General of Civil Aviation (DGCA).
The aviation ministry issued an order on September 2 stating that, "45 percent capacity may be read as 60 percent capacity," modifying its June 26 order where it had put a 45 percent cap on the number of domestic flights.
Over 1.20 lakh passengers took to the skies across the country on September 1, the Civil Aviation Ministry has said, adding that domestic aviation operations continue to grow steadily.
