Shares of aviation companies were trading under pressure on Thursday with SpiceJet and IndiGo
The crude oil prices fell after the US banned travel from Europe following a declaration that the coronavirus outbreak is now a pandemic. Brent Crude slipped by 2% at USD 34.02/bbl.
WHO on Wednesday suspended “all existing visas, except diplomatic, official, UN/international organisations, employment, project visas” until April 15.
“We expect our quarterly earnings to be materially impacted because of the above. In addition, the rupee has also depreciated sharply which will have an adverse impact on our dollar-denominated liabilities primarily on account of capitalized operating leases,” IndiGo said in the statement.
“In January and February 2020, IndiGo experienced a modest impact from the Coronavirus. We cancelled our flights to China and Hong Kong and reduced frequency to certain other South-east Asia markets. This capacity was redeployed in other markets without having a material impact on our revenues. Over the past few days, however, week-on-week, we have seen a 15-20% decline in our daily bookings. Please note that the numbers could change from here based on how the situation evolves, IndiGo added.
Stock view:
SpiceJet Ltd is currently trading at Rs48.35, down by Rs12 or 19.88% from its previous closing of Rs60.35 on the BSE.
Interglobe Aviation Ltd is currently trading at Rs1,039.95, down by Rs115.5 or 10% from its previous closing of Rs1,155.45 on the BSE.
The crude oil prices fell after the US banned travel from Europe following a declaration that the coronavirus outbreak is now a pandemic. Brent Crude slipped by 2% at USD 34.02/bbl.
WHO on Wednesday suspended “all existing visas, except diplomatic, official, UN/international organisations, employment, project visas” until April 15.
“We expect our quarterly earnings to be materially impacted because of the above. In addition, the rupee has also depreciated sharply which will have an adverse impact on our dollar-denominated liabilities primarily on account of capitalized operating leases,” IndiGo said in the statement.
“In January and February 2020, IndiGo experienced a modest impact from the Coronavirus. We cancelled our flights to China and Hong Kong and reduced frequency to certain other South-east Asia markets. This capacity was redeployed in other markets without having a material impact on our revenues. Over the past few days, however, week-on-week, we have seen a 15-20% decline in our daily bookings. Please note that the numbers could change from here based on how the situation evolves, IndiGo added.
Stock view:
SpiceJet Ltd is currently trading at Rs48.35, down by Rs12 or 19.88% from its previous closing of Rs60.35 on the BSE.
Interglobe Aviation Ltd is currently trading at Rs1,039.95, down by Rs115.5 or 10% from its previous closing of Rs1,155.45 on the BSE.
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