Indian airlines have experienced a rapid growth in stock prices following the lifting of the government’s restrictions on passenger capacity.

IndiGo’s parent company InterGlobe Aviation saw stocks rise by more than 4.8%, while SpiceJet’s stocks increased by 5.9%, Reuters reports.

India placed heavy restrictions on airline operations following a two months suspension in early 2020. Only partial resumption of flights was permitted, with airlines operating at no more than 50% of their capacity.

While  restrictions were eased incrementally, conditions remained strict. As a result, the largest Indian carriers, including both IndiGo and Vistara, suffered heavy losses, and the country’s aviation market was slow to recover.

The latest change to restrictions coincides with India’s holiday season. On October 12, 2021, India’s Ministry of Civil Aviation announced that, from October 18, 100% seat capacity will be permitted as the number of COVID-19 infections decreases and the vaccination program moves forward.