The Directorate General of Civil Aviation (DGCA) raised the minimum and maximum fares by 10-30% on domestic flights effective immediately, resulting in the stocks of SpiceJet and InterGlobe Aviation (IndiGo airlines) to gain in early trade on Friday.

Spicejet was up 4% at 10 am. It was trading at ₹91.50 on the BSE, up ₹3.80 or 4.33%. It opened at ₹93.20 as against the previous close of ₹87.70, hit an intraday high of ₹94.00 and an intraday low of ₹91.05. On the NSE, it was trading at ₹91.55, up ₹3.80 or 4.33%. InterGlobe Aviation reported marginal gains. It was trading at ₹1659 on the BSE, up ₹31.90 or 1.96%, hit an intra-day high of ₹1,704 as against the previous close of ₹1627.10. It hit an intraday low of ₹1655.00. On the NSE, it was trading at ₹1,659, up ₹28.65 or 1.76%. The DGCA raised the minimum and maximum fares on Thursday. Domestic airlines can charge the increased fares in the seven categories into which domestic routes are divided.

The increase is in the range of 10% for a one-way fare at the minimum fare level for a flight having a duration of less than 40 minutes to about 30% for a maximum fare for a flight having a duration of between 180-210 minutes. The decision was made due to a slight increment in the number of passengers, and to help the two listed airlines (IndiGo and SpiceJet) that recorded losses in the quarter ended December 2020.