Mumbai: Aviation stocks have zoomed since IndiGo (InterGlobe Aviation) made its debut on the exchanges. However, both SpiceJet and Jet Airways were taxiing on the runway even as Indigo was preparing to come out with its initial offer. The listing gave a final boost to shares of airline companies as all three took off together.
While Indigo has stolen the limelight by gaining more than 50% from its offer price in eight trading days, other airline stock too have done a credible job, especially SpiceJet. From a low of Rs 11.25 on December 16, 2014 the stock currently trades at Rs 62.30, a nearly six-time gain in less than a year.
Jet Airways has moved from a low of Rs 203.50 on September 26, 2014, to Rs 458.30, more than double in fourteen months.
As can be seen, the rally in airline stocks started much before Indigo’s primary market issue. Aviation stocks have done well mainly on account of low fuel prices. Profitability of these companies is heavily dependent on aviation fuel prices, which account for almost half of operational expenses. A 20% increase in traffic in the first nine months of the current fiscal has also helped. Government policies, especially the draft aviation policy, has helped in improving sentiment for the sector, which been languishing for over a decade.
24/11/15 Shishir Asthana/Business Standard
To Read the News in full at Source, Click the Headline
While Indigo has stolen the limelight by gaining more than 50% from its offer price in eight trading days, other airline stock too have done a credible job, especially SpiceJet. From a low of Rs 11.25 on December 16, 2014 the stock currently trades at Rs 62.30, a nearly six-time gain in less than a year.
Jet Airways has moved from a low of Rs 203.50 on September 26, 2014, to Rs 458.30, more than double in fourteen months.
As can be seen, the rally in airline stocks started much before Indigo’s primary market issue. Aviation stocks have done well mainly on account of low fuel prices. Profitability of these companies is heavily dependent on aviation fuel prices, which account for almost half of operational expenses. A 20% increase in traffic in the first nine months of the current fiscal has also helped. Government policies, especially the draft aviation policy, has helped in improving sentiment for the sector, which been languishing for over a decade.
24/11/15 Shishir Asthana/Business Standard
