Amid the grounding of airline services by Jet Airways, stocks of InterGlobe Aviation (IndiGo's parent company) and SpiceJet soared to become the most expensive airline stocks globally. In fact, the InterGlobe entered the group of top 10 airlines in the world in terms of market capitalisation after hitting $8.1 billion-mark.
SpiceJet and InterGlobe having gained 77 percent and 80 percent respectively in the last six months have outperformed Bloomberg World Airlines Index.
According to analysts, the airlines sector in India is among the fastest growing in the world and remain bullish on the stocks.
After the cut in capacity by Jet Airways over unpaid dues, the demand and supply gap increased, which inturn eased the revenue per passenger per kilometre pressure in the last few months by 10 to 15 percent.
An Economic Times report said that the two budget carriers plan on adding 100 planes to their fleet this fiscal year. Analysts expect the available seat kilometres (ASKM), a determinant of yield apart from ticket prices, to grow at 20 to 60 percent in FY20 when compared to 15 to 20 percent in the previous year.
Meanwhile, experts says that even if lenders were to revive Jet Airways, it will be a while before the airlines reaches full operating capacity.