Aviation stocks: Increase in crude oil prices could put pressure on growth

Increase in crude oil prices could put pressure on growth

Aviation stocks gained on Monday after posting another month of strong double-digit increase in passenger traffic (volumes), even as the market remains weak.
 

Airlines flew 11 million passengers in January, a 19.7 per cent increase over December 2017 and the year-ago period.

Strong growth and a moderate supply imply airlines such as Jet Airways, IndiGo and SpiceJet have reported load factors in the range of 89-95 per cent, improving their aircraft utilisation (load factor) and cost efficiencies.

Analysts expect higher load factors to sustain in the near term, led by increased demand and aircraft supply issues. IndiGo continues to face