The Inter Globe aviation Ltd stock has been rentless. Shares of the company, which runs India’s largest airline IndiGo, flew to a new high on Friday, closing 11% up to the National Stock Exchange.
Investors are excited about the prospectus of inclusion of aviation turbine fuel under the Goods and Service Tax ambit. The GST council has decided that it’s not appropriate to bring petroleum products under GST at this stage.
The gradual lifting of restrictions and rising pace of vaccinations have driven up domestic air passenger traffic. According to the Directorate General of Civil Aviation passenger traffic in August increased by nearly 34% month on month, August performance was still 14% below the high seen in February.
The Government has allowed airlines fly 85% of their pre- covid domestic capacity from 72.5%, if recovery is decent and third wave does not hit the country this will improve the festive of December.