Aviation stocks run into rough weather

Aviation stocks have been having a dream run for some time now – both in terms of their performance on the bourses and financial performance too. This was mainly on account of crude price remaining low which helped bring down its aviation fuel price – on an average over 40% of total cost comprises of jet fuel.

But with crude showing a gradual rise, price of jet fuel has also been increasing steadily and yesterday, the fuel price was hiked by a sharp 9.2% at Rs 46,729.48/kl. This is the fifth price hike since January’16 and we are just entering the half-year mark.

This hike in jet fuel price has put the aviation stocks in the red – Indigo is down over 2% at Rs.1038, Jet Airways is down almost 2% at Rs.578 levels though Spicejet remains just about in the green, up 0.6% at Rs.68.