 "Jet Airways slips on heavy volumes")
Shares of Jet Airways have slipped 12% to Rs 344 on the BSE on back of heavy volumes.
The stock hit a low of Rs 339 and has seen trading volumes on the counter more than doubled. Till 1321 hours, a combined 2.17 million shares already changed hands against an average sub one million shares that were traded daily in past two weeks on the BSE and NSE.
In past two trading sessions, the stock tanked 16% from Rs 409 on May 5, after Brent crude rallied to a 2015 peak of $69.63 on Wednesday before closing below $68 a barrel.
The price of crude oil has a significant impact on the airline industry’s cost structure since fuel costs comprise around 49% of an airline’s operating costs (this number was 38% for domestic operations).
The stock hit a low of Rs 339 and has seen trading volumes on the counter more than doubled. Till 1321 hours, a combined 2.17 million shares already changed hands against an average sub one million shares that were traded daily in past two weeks on the BSE and NSE.
In past two trading sessions, the stock tanked 16% from Rs 409 on May 5, after Brent crude rallied to a 2015 peak of $69.63 on Wednesday before closing below $68 a barrel.
The price of crude oil has a significant impact on the airline industry’s cost structure since fuel costs comprise around 49% of an airline’s operating costs (this number was 38% for domestic operations).
Meanwhile, SpiceJet too dipped 6% at Rs 17 on the BSE.
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