Tuesday, June 21, 2011

Indian Airline Regulator Grounds Soaring Airfares

Indian airline stocks, which soared along with rising airfares to 52-week highs during?the November?festival season, are coming back to reality.

In early trade Thursday, Kingfisher Airlines Ltd. lost 2.3% to 62.40 rupees ($1.38), SpiceJet Ltd. was 2.9% lower at 80.80 rupees and Jet Airways (India) Ltd. slid 1.6% to 779.15 rupees.?These stocks are?down 31.4%, 17.1% and 15.9% respectively?from the yearly highs seen around the?Diwali festival?last month, when people usually fly to be with their families.

The airline industry in India is making a brisk recovery thanks to high economic growth and increased demand for business travel, with domestic traffic up 18% at 41.9 million passengers during the January-October period. Ticket prices have risen by about 15% from a year earlier, analysts say.

Continue reading on India Real Time.

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