Aviation stocks slide on firming crude oil prices

Three aviation stocks fell 1.74% to 5.44% at 14:37 IST on BSE following a firmness in global crude oil prices.

Jet Airways (India) (down 5.44%), Interglobe Aviation (down 4.43%) and SpiceJet (down 1.74%), edged lower.

Meanwhile, the S&P BSE Sensex was down 253.79 points or 0.72% at 34,963.32.

In the global commodities markets, Brent crude oil futures for August settlement was currently down 12 cents at $77.50 a barrel. The contract had surged $1.31 a barrel or 1.72% to settle at $77.62 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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