Airline stocks gain on positive industry forecast

MUMBAI: Stocks of airlines companies moved higher after the International Air Transport Association (IATA) upgraded global industry forecast to a full-year profit of $2.5 billion.

“The global traffic is back to pre-recession levels with load factors nearing 80% and the bottom line is improving.

Today we are upgrading our global industry forecast to a full-year profit of $2.5 billion (13). This is the first global profit since 2007. It is a reason to celebrate. But with a margin of 0.5%, it will be a modest party,” said Giovanni Bisignani, Director General and CEO, IATA at 66th Annual General Meeting.

There are also reports SpiceJet has applied afresh for permission to operate Colombo.

Shares of Spicejet were at Rs 60.05, up 5.72 per cent, Kingfisher Airlines moved 4.04 per cent higher to Rs 45.05 and Jet Airways climbed to Rs 498, up 2.37 per cent.