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InterGlobe Aviation hits 17-month high

The stock gained 4.4% to Rs 1,206 on BSE in intra-day trade.

SI Reporter  |  Mumbai 

Indigo

Shares of Indigo-owner  moved higher to its 17-month high of Rs 1,206, up 4.4% on the BSE in an otherwise subdued The stock is trading at its highest level since January 2016.

SpiceJet and Jet Airways (India) also gained in the range of 2% to 3%, following slide in crude prices.

Lower crude prices benefit aviation companies as jet fuel constitutes over 40% of an airline's operating costs.

Thus far in the calendar year 2017, SpiceJet (up 121%), Jet Airways (up 58%) and (46%) have outperformed the Sensex, which gain 17%.

Meanwhile, according to JP Morgan, Goods and Service Tax (GST) rate of 5% on airline tickets is 100bps lower than the previous service tax, which is a positive, given industry fears of a potential 12% tax slab earlier. Business class tickets are to be taxed at 12%.

improved its market share to 41.4% in April with domestic traffic increasing 23% Y/Y. Domestic load factor was 87% in April. The airline plans to increase capacity by 25% in FY18; and is thus likely to gain additional market share, added report.

First Published: Thu, June 15 2017. 11:08 IST
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