SpiceJet was up 3% to hit its new high of Rs 131, while InterGlobe Aviation that runs IndiGo Airlines was up 2.2% at Rs 1,259, touching a fresh 52-week high on the BSE in intra-day trade. Jet Airways was up 3% too to Rs 566.
Indian airlines ferried over 10 million passengers in May, setting a new "record" for maximum number of passengers flown in a month domestically, according to released data.
As per monthly traffic data released by the Directorate General of Civil Aviation (DGCA), Indian airlines carried about 10 million passengers last month as compared to 8.6 million passengers in May, 2016, registering a growth of 17.36% in domestic air traffic.
Passengers carried by domestic airlines during Jan-May 2017 were 46.6 million as against 39.6 million during the corresponding period of previous year thereby registering a growth of 17.63%. CLICK HERE FOR FULL DETAILS
Meanwhile, oil prices fell nearly 3% to seven-month low on Tuesday after increase in supply by several key producers overshadowed high compliance by Opec and non-Opec oil producers with a deal to cut global output amid a continued sell-off driven by funds, the Agencies report suggests. CLICK HERE TO READ FULL REPORT.
Jet fuel or aviation turbine fuel (ATF) typically makes up almost half of an airline's operating cost. Prices of jet fuel are directly linked to crude oil prices.
According to analyst at SBICAP Securities, the global aviation industry is upbeat on the Indian market’s growth prospects. Going ahead, plane makers like Boeing/Airbus expect India to be one of their key markets, with the fleet size of India carriers likely to expand significantly over the next few years from current levels of around 500 aircrafts.
“According to the International Air Transport Association (IATA), the trade association of global airlines, India is the fastest growing market in the world now, and is expected to displace the UK to occupy the third place in 2025. The International Air Transport Association (IATA) expects India to add 322 million new passengers by 2035 to take the total market to 442 million,” analyst said in an aviation sector update.
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