Shares of two aviation firms fell 1.13% to 1.15% at 12:10 IST on BSE as global crude oil prices surged yesterday, 15 April 2015.
SpiceJet (down 1.15%) and Jet Airways (India) (down 1.13%) edged lower.
Meanwhile, the S&P BSE Sensex was down 126.71 points or 0.44% at 28,672.98.
Aviation turbine fuel (ATF) or jet fuel typically constitutes about 50% of airlines' operating costs. Jet fuel prices are directly linked to international crude oil prices.
Brent crude oil futures edged lower after a sharp surge overnight. Brent for June settlement was off 29 cents at $63.03 a barrel. The contract had surged $3.51 a barrel or 5.86% to settle at $63.32 a barrel during previous trading session. The surge in global crude oil prices yesterday, 15 April 2015, was triggered by a smaller-than-expected increase in weekly US crude stockpiles as well as forecast of higher demand from the International Energy Agency.
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