DGCA halts travel bookings as stocks dip by 6%

Airline stocks recently settled up to 6 percent lower after the civil aviation regulator DGCA directed airlines to stop taking bookings for travel after 3 May.

Shares of InterGlobe Aviation, parent of IndiGo, tumbled 6.05 percent to close at Rs 1,004.50 per unit and those of SpiceJet fell by 1.85 percent to Rs 47.70 apiece on the BSE.

The Directorate General of Civil Aviation (DGCA) issued a circular stating, “all airlines are hereby directed to refrain from booking tickets. Further, the airlines may note that they shall be given sufficient notice and time for restarting operations.”

All domestic and international commercial passenger flights have been suspended for the lockdown period. However, cargo and special flights permitted by the DGCA can fly in this period.

The first phase of the lockdown was from 25 March to 14 April. The second phase began on 15 April and ends on 3 May.