Aviation stocks slide as crude oil prices jump

Three aviation stocks fell 0.85% to 4.77% at 12:25 IST on BSE after a surge in global crude oil prices in the previous session.

SpiceJet (down 4.77% at Rs 60.95), Jet Airways (India) (down 0.94% at Rs 542.40) and InterGlobe Aviation (down 0.85% at Rs 861.35), edged lower.

Meanwhile, the S&P BSE Sensex was down 234.66 points or 0.81% at 28,810.62.

In the global commodities markets, Brent crude oil futures for November settlement was currently down 59 cents at $49.40 a barrel. The contract had surged $2.01 a barrel or 4.18% to settle at $49.99 a barrel during the previous trading session after data showed a surprisingly huge weekly drop in US crude stock piles.

 

Higher crude oil prices hurt aviation firms as jet fuel prices, which typically constitute over 40% of airlines' operating costs, are directly linked to international crude oil prices.

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