Coronavirus Outbreak: Aviation stocks fall after DGCA directive to stop bookings for travel after 3 May
Airline stocks fell up to 5.5 percent on Monday after regulator DGCA directed airlines to stop taking bookings for travel after 3 May
New Delhi: Airline stocks on Monday settled up to 6 percent lower after the civil aviation regulator DGCA directed airlines to stop taking bookings for travel after 3 May.
Shares of InterGlobe Aviation, parent of IndiGo, tumbled 6.05 percent to close at Rs 1,004.50 per unit and those of SpiceJet fell by 1.85 percent to Rs 47.70 apiece on the BSE.
DGCA on Sunday directed airlines to stop taking bookings for travel after 3 May, assuring them that they would be given sufficient time to restart flight operations.
The Directorate General of Civil Aviation (DGCA) issued a circular stating, "all airlines are hereby directed to refrain from booking tickets... Further, the airlines may note that they shall be given sufficient notice and time for restarting operations."
All domestic and international commercial passenger flights have been suspended for the lockdown period. However, cargo and special flights permitted by the DGCA can fly in this period.
The first phase of the lockdown was from 25 March to 14 April. The second phase began on 15 April and ends on 3 May.
Mumbai registered 978 cases of COVID-19 and two fatalities in the last 24 hours
Two planes in India — a Spicejet one bound for Delhi and an Indigo flight — were struck by bird hits on Sunday and had to be grounded. As per International Civil Aviation Organization data, airlines face an average of 34 such strikes in a day, amounting to a loss of around $1 billion annually