Global aviation stocks are flying high this week as positive news of Pfizer’s covid-19 vaccine fuelled hopes of a rebound in air traffic. As it turns out, leading the charge is India’s InterGlobe Aviation Ltd. Its shares are trading close to a 52-week high and comfortably above its pre-covid highs. InterGlobe’s shares are about 1% away from its 52-week high, while Korean Airlines, Wizz Air Holdings, China Airlines and Spring Airlines, who are next in line, are trading about 5-7% lower.
“The recent increase in share price is a function of improving trends in daily traffic for the sector, market share gains for IndiGo and path to recovery in domestic traffic in light of the upcoming festive season and positive developments related to a vaccine,” said Aditya Mongia, an analyst at Kotak Institutional Equities.
