Aviation stocks slide on firm crude oil prices

Two aviation stocks fell 2.56% to 4.90% at 12:24 IST on BSE, following a firmness in global crude oil prices.

InterGlobe Aviation (down 2.56%) and SpiceJet (down 4.90%), edged lower.

Meanwhile, the S&P BSE Sensex was down 200.31 points or 0.51% at 39,401.32.

In the global commodities markets, Brent crude oil futures for August 2019 settlement was currently down 9 cents at $ 64.36 a barrel. The contract surged $2.63 a barrel or 4.25% to settle at $64.45 a barrel during the previous trading session.

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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