Airlines Sector - Mr. Jyoti Roy, DVP - Equity Strategist, Angel Broking Ltd

"The central government announced that domestic airlines will now be allowed to operate at 60% of their pre-Covid level capacity as compared to 45% earlier. After resuming domestic passenger flights in India from the 25th of May the Civil Aviation Ministry had allowed Indian airlines to operate at 33% of their pre-COVID levels which was increased to 45% from the 26th of June. While this move is sentimentally positive for Airline companies we believe that demand will remain muted in the near future and is expected to pick up post the festive season and maintain a neutral rating on the sector. Markets will be keenly awaiting data for the domestic aviation industry for the month of August which will be released in a few days by the DGCA."

Source : Equity Bulls

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