Airlines move with economic cycles, and past downturns caused multiple airline bankruptcies and failures.
However, the airline stocks have successfully bounced back by climbing up to 704 percent from their 52-week low levels in the last one year period.
The revenue of the domestic aviation saw a sharp decline by more than 65 percent in 2020 which undermined the good work the industry did.
With the market trading at an all time high level, they are projected to reach their peak in the near future.
Currently, there’s a steady downfall in the shares of Jet Airways by a margin of 92 percent from their all-time high of Rs 1,379 recorded on April 26, 2005.
Indigo on the other hand has also witnessed a decline in their share prices by 16 percent below their record of Rs 1,911, as on September 23, 2019.
Meanwhile, shares of SpiceJet have gone down by a margin of 44 percent from their all-time high of Rs 156.90 which was achieved on June 3, 2019.
Moreover, due to the Covid 19 outbreak, most airline stocks lost 50% or more of their value as the pandemic spread globally.
Towards the end of 2020, a sharp downturn was witnessed in the domestic air traffic of India by 56.27 percent by passenger numbers.
In fact, the airline capacity by available seat kilometres (ASK) crashed down to 48.02 percent and 48.76 percent by departures respectively.
Moving forward, the aviation stocks have been gradually scaling up with the market post the March 2020 lows, outperforming many other sectors.
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