Shares of two aviation companies rose by 5.21% to 5.56% at 14:37 IST on BSE after robust earnings of unlisted rival IndiGo boosted hopes of a turnaround in the aviation sector.
Jet Airways (India) (up 5.56%) and SpiceJet (up 5.21%), edged higher.
The S&P BSE Sensex was up 21.85 points, or 0.09% at 25,644.02.
Unlisted low-cost airliner IndiGo posted an over fourfold increase in its net profit for the financial year ended March 2015 (FY 2015), as a fall in fuel prices and interest income from its surplus cash aided operations. The airline posted a record net profit of Rs 1304 crore in the year ended 31 March 2015, compared with Rs 473 crore in the year ended March 2014. Its revenues rose 25% to Rs 14320 crore in the year ended 31 March 2015 over in the year ended 31 March 2014.
IndiGo, which is awaiting approval for its IPO, gave its financial results to the Directorate General of Civil Aviation on Thursday, 10 September 2015.
Crude prices have fallen sharply and are expected to remain under pressure for sometime going ahead. Lower crude oil prices benefit aviation firms as jet fuel prices, which typically constitute about 50% of airlines' operating costs, are directly linked to international crude oil prices.
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