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Airline stocks fly high after good growth in passenger traffic

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of three airliners rose 1.49% to 2.98% at 11:25 on after the traffic data showed passengers carried by domestic airlines rose 17.36% to 1.01 crore in May 2017 over May 2016.

The traffic data was announced by the Ministry of Civil Aviation after market hours yesterday, 19 June 2017.

Meanwhile, the S&P Sensex was up 34.38 points, or 0.11%, to 31,346.41.

Jet Airways (up 1.49%) and Interglobe Aviation (up 2.98%) gained.

SpiceJet gained 2.13% after the company and Boeing signed a memorandum of understanding for 40 737 MAX airplanes. The company made the announcement after market hours yesterday, 19 June 2017.

SpiceJet said that the agreement, valued at approximately $4.74 billion at current list prices, is split evenly between 20 new orders for the 737 MAX 10 and conversions of 20 of the low-cost carrier's 737 MAX 8 airplanes of its current order to 737 MAX 10s.

The traffic data showed passengers carried by domestic airlines rose 17.63% to 4.65 crore in January-May, 2017 over January-May, 2016.

Meanwhile, oil prices held steady on the heels of seven-month lows, with investors remaining dubious about how effective the production cuts spearheaded by Saudi Arabia and Russia have been and will be. In the global commodities markets, Brent for August 2017 settlement was up 5 cents at $46.96 a barrel. The contract had fallen 46 cents to settle at $46.91 a barrel during the previous trading session.

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. State-run oil marketing companies revise jet fuel prices on the last day of every month based on the average international crude price.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, June 20 2017. 11:39 IST