Aviation stocks take off

Shares of three aviation companies were up by 2.56% to 16.12% at 13:40 IST on BSE, tracking weakening crude oil prices.

SpiceJet (up 16.12%), Jet Airways (up 5.21%) and Interglobe Aviation (up 2.56%), edged higher.

The S&P BSE Sensex was up 250.23 points, or 0.72% at 35,175.10.

Crude prices fell for third day in a row in international markets as Saudi Arabia and Russia said they may increase supplies. In the global commodities markets, Brent for July 2018 settlement was down 26 cents at $76.18 a barrel. The contract slumped $2.35 a barrel or 2.98% to settle at $76.44 a barrel during the previous trading session.

 

Lower crude oil prices would benefit aviation firms as jet fuel prices, which typically constitute about 50% of airlines' operating costs, are directly linked to international crude oil prices. Jet fuel prices tend to fall with slide in oil prices.

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