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Crude oil spike, weakening rupee cause turbulence for aviation stocks

This would offset the recovery in volumes from the lows in May

Air passenger, traffic, flights, airlines, aviation, flying
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The shift of international leisure market from India to the domestic market could aid volumes of domestic players.

Ram Prasad Sahu Mumbai
Since their lows in April, Aviation stocks InterGlobe Aviation (IndiGo) and SpiceJet have gained 18-32 per cent on expectations of improvement in passenger traffic and regulatory relief in the form of higher fares and expansion in capacity.

The government had increased the domestic fare by 5 per cent (at the lower band) from the start of April and further by 13-15 per cent in June. This follows an increase of 10-30 per cent in rise in the upper and lower bands in February this year. The hikes were prompted by the increase in aviation turbine fuel prices, which increased 81

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