Go First bankruptcy effect! Airline stocks rally up to 8%

Airline stocks in India rallied up to 8% following the insolvency filing of Go First, with investors expecting consolidation in the industry. Jefferies analyst Prateek Kumar said the unexpected shutdown of Go First is likely to drive supply constraints, which could benefit air fares, especially with recent strong traffic trends in the Indian aviation sector. The Wadia Group-owned airline had not defaulted on its total debt of Rs 65.21bn ($873m) to financial creditors as of 30 April, but had defaulted on payments to operational creditors.