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Airline stocks extend gains after slide in crude oil prices

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Capital Market
Last Updated : Jun 22 2017 | 12:01 AM IST

Shares of three airliners rose 1.63% to 2.59% at 12:00 IST on BSE on further slide in crude oil prices.

Meanwhile, the S&P BSE Sensex was down 77.76 points, or 0.25%, to 31,219.77.

Jet Airways (up 2.59% to Rs 563), SpiceJet (up 2.57% to Rs 129.85) and InterGlobe Aviation (up 1.63% to Rs 1,249.05) gained.

Crude oil prices held around their multi-month lows as investors and traders were wary about the strong compliance by Organization of Petroleum Exporting Countries (OPEC) and non-OPEC oil producers deal to cut global output. Brent for August 2017 settlement was down 14 cents at $45.88 a barrel. The contract had fallen 89 cents or 1.89% to settle at $46.02 a barrel during the previous trading session.

Jet fuel or aviation turbine fuel (ATF) typically makes up almost half of an airline's operating cost. Prices of jet fuel are directly linked to crude oil prices. State-run oil marketing companies revise jet fuel prices on the last day of every month based on the average international crude price.

Meanwhile, Ministry of Civil Aviation after market hours on 19 June 2017 had announced the traffic data that showed passengers carried by domestic airlines rose 17.36% to 1.01 crore in May 2017 over May 2016.

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First Published: Jun 21 2017 | 12:31 PM IST

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