At a time when key benchmark indices moved up about 10%, jump in aviation stocks is remarkable.
For instance, counter of SpiceJet is up around 20% while that of Naresh Goyal-promoted Jet Airways is trading 35% higher.
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SpiceJet pioneered the hike in fares this season and was followed by other entities, listed as well as non-listed, in the range of 25-30%.
Though Chennai-based air passengers' association termed it a cartel and raised the issue with competition watchdog Competition Commission of India (CCI), aviation stocks continued to scale higher.
Interestingly, rise in aviation counters have come within a short span of hitting their 52-week low in the later part of the previous month.
SpiceJet had hit a low of Rs 18.05 on 30 August while Jet Airways touched its year low of Rs 280 on 28 August. However, both are trading higher at Rs 21.5 and Rs 377, respectively.
In general, before festive season starts aviation companies raise air fares. Company officials admit that they make money during this season only.
Continuous rise in ATF prices for last four months have been taking a toll on airline companies. On top of it, weakening rupee against US dollar and Syria crisis had made Brent crude touch a recent high of above $117. But since then, crude has cooled off as Syria tensions eased and rupee appreciated.