Airline stocks take off

Jet Airways is a major gainer on the BSE currently, up almost 3% at Rs.214, with an intra day high at Rs.218. Spicejet is also up over 3.5% at Rs.13.

These aviation stocks have spiked up after aviation fuel costs were cut by 3% due to falling crude price globally. This is the third price cut since July’14. This in numbers – jet fuel price in Delhi cut by Rs.2,077.62 per kilolitre, to Rs 67,525.63 per kl. This is very good news for airline companies whose 40% cost is on account of this jet fuel. Thus any cut in the price will help bring down its costs.