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Airline stocks jump after slide in crude oil prices

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Capital Market
Last Updated : Jul 07 2015 | 12:01 AM IST

Two airline stocks jumped by 3.94% to 11.85% at 15:00 IST on BSE after slide in crude oil prices.

Meanwhile, the BSE Sensex was up 59.81 points, or 0.21%, to 28,152.60.

Among airline stocks, Jet Airways (India) (up 11.85%) and SpiceJet (up 3.94%) gained.

In global commodities markets, Brent crude oil futures edged lower after Greece rejected austerity measures demanded in return for bailout money, increasing the chances of the country having to abandon the euro. Brent for August settlement was down $1.16 a barrel at $59.16 a barrel.

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.

Meanwhile, PSU OMCs reduced jet fuel prices on 30 June 2015. PSU OMCs reduced jet fuel prices by Rs 2086.56 per kiloliter or 3.91% to Rs 51267.36 per liter in Delhi, with corresponding price revision in other states. The revised jet fuel prices took effect from 1 July 2015. Jet fuel prices were last revised to Rs 53353.92 per kiloliter in Delhi on 1 June 2015. 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.

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PSU OMCs review jet fuel prices on the last day of the month based on the average imported oil price for the month.

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First Published: Jul 06 2015 | 2:46 PM IST

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