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Shares of InterGlobe Aviation and SpiceJet jumped on report of cargo business plan. InterGlobe Aviation Ltd, which operates top Indian airline IndiGo, rose as much as 3.9 per cent to Rs 919.45, while SpiceJet Ltd gained 3.8 per cent to Rs 80.95.
According to a media report, budget carriers IndiGo and SpiceJet are looking at transporting cargo to boost income. SpiceJet will add freighter aircraft while IndiGo plans to ferry perishable cargoes in its planes.
SpiceJet and InterGlobe did not immediately respond to Reuters' request for comment. “Cargo growth can be an area of better growth potential for these carriers,’’ an analyst with a domestic brokerage says, adding that the news about cargo is definitely positive for these stocks.
The analyst says shares have also corrected sharply due to oil prices. Oil prices were steady on Friday as market balances a fall in US crude inventories to the lowest levels since 2015, with Sino-American trade tensions and economic weakness from emerging markets.
As of last close, InterGlobe shares had fallen 26.6 per cent this year, while SpiceJet had declined 46.6 per cent.
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