Aviation stocks surged up to 7% on Wednesday morning even as global crude oil prices fell to one-year low yesterday.
Aviation stocks surged in trade on Wednesday morning even as global crude oil prices fell to one-year low yesterday. Spicejet share price gained more than 7.2% to hit the day’s high at Rs 83.90. Jet Airways shares price zoomed more than 4.7% to intra-day high of Rs 325. Interglobe Aviation, which runs the IndiGo airline, rallied by 4.4% to hit the day’s high at Rs 1,079.
Yesterday, oil prices plummeted as much as 7% snapping four days of gains and renewing a sell-off that has plunged crude futures into a bear market. This morning, International Brent crude oil futures were at $63.19 per barrel at 0239 GMT, up 66 cents, or 1.1 percent from their last close.
U.S. West Texas Intermediate (WTI) crude futures, were up 66 cents, or 1.2%, at $54.09 a barrel. As domestic carriers are facing “substantial losses”, the Federation of Indian Airlines (FIA) has written to the the civil aviation ministry seeking concessions and additional time to pay oil companies and airport operators. The FIA represents full-service carrier Jet Airways and three budget airlines, IndiGo, SpiceJet, and GoAir.
“We always engage with the industry, we listen to their concerns and their issues. They have brought up multiple issues in the past that we have resolved. We shall take a look at the most recent representation from them and see what we can do to support the industry,” civil aviation minister Jayant Sinha told in an interview to CNBC TV18. Meanwhile, oil stocks too gained in trade on Wednesday morning on falling crude oil prices. BPCL shares zoomed more than 6% to Rs 342.85, IOC shares rallied by more than 6.7% to Rs 148.50. HPCL shares were up 7.5% to Rs 261.80 in the morning trade this morning.