InvestorQ : How will the new middle seats rule change impact airline stocks like Indigo Airlines and Spice Jet?
Archita Jajjoo made post

How will the new middle seats rule change impact airline stocks like Indigo Airlines and Spice Jet?

Answer
user profile image
Rashi Mehra answered.
3 months ago


On 26 June, the Supreme Court decreed that there was absolutely no need to keep the middle seat in flights vacant during the COVID-19 pandemic. However, the SC did insist that adequate safety measures be deployed for the safety and health of passengers. The SC felt that it was not necessary to keep middle seats empty if proper safety care was taken.

This order allowing airlines to fly people in the middle seats had been first issued by the Mumbai High Court. However, Pilots had objected to this move and had asked for the middle seats to be kept empty to reduce the risk for passengers. That now stands struck down and airlines can fly people in middle seats too.

This order should come as a relief to airlines like Indigo and Spice Jet. Leaving middle seats empty would have led to one-third of the plane flying empty. The fixed costs would have been the same but the revenues would have been crunched by 33% due to keeping the middle seats empty. This should be a relief for the airlines.