Shares of airline companies plunged up to 10 per cent on Friday as rating agency ICRA said the outlook for the aviation sector remains negative in the wake of coronavirus outbreak.
Shares of Interglobe Aviation –the parent of IndiGo – plunged 9.99 per cent to ₹1,229.75 on the BSE. Spicejet stock cracked 6.06 per cent to a low of ₹82.10.
Defunct airline Jet Airways (India) hit its lower price band losing 4.84 per cent at ₹24.55.
According to ICRA, the outlook for India’s aviation industry remains negative in the wake of coronavirus outbreak, which has resulted in many international passengers cancelling their travel to South East Asian countries.
Traffic from these countries accounts for around 19.5-23.8 per cent of the total international passengers flying to and from India, it noted.
The extent of impact of the flight or ticket cancellations on the profitability of the domestic airlines would, however, vary depending on the airlines’ presence in these routes.