Aviation shares extend gains on hopes of profit growth

Airline shares gained on hopes that growth in passenger load and lower fuel cost would boost profits

After a sharp rally in the previous session, airline shares extended gains on hopes that increase in passenger load and lower aviation fuel costs would help boost profits in the second quarter ended September 2015.

Aviation fuel comprises about 40% of an airline's operational costs.

SpiceJet has surged 4% to Rs 38.80 after hitting a fresh 52-week high of Rs 40 on the BSE. Trading volumes in the stock were higher at 16.8 million shares compared to the two-week average quantity of 9.72 million shares, as per stock trading data on the BSE.

Meanwhile, recent reports that the no-frills airline plans to induct six new aircraft into its fleet from October 25 to augment frequencies in select sectors also aided sentiment.

Jet Airways has also witnessed huge volumes with over 4.5 million shares traded so far on both the stock exchanges. At 12:35PM, the stock was up 2.1% at Rs 378 on the BSE.