Airline stocks hit multiple air pockets in March quarter; IndiGo, Jet fall

Both operating and net profit declined by 73-74% over the year-ago quarter

A poor March quarter (Q4) performance by InterGlobe Aviation (IndiGo) because of a spike in crude oil prices and higher competitive intensity impacted aviation stocks, as the market feared that the pressure would also reflect on other airline companies. While shares of IndiGo and Jet Airways lost 10-12 per cent each, SpiceJet shed 6 per cent at close on Thursday. Higher fuel costs has prompted analysts to cut IndiGo’s FY19 earnings estimates by 14 per cent. Though the sector is enjoying record load factors and demand which resulted in strong revenue growth for IndiGo, higher crude oil prices and severe