SpiceJet, IndiGo drop up to 5% as ATF likely to get costlier
NEW DELHI: Shares of airline operators InterGlobe Aviation and SpiceJetNSE -3.88 % fell up to 5 per cent in Monday’s trade following a spike in crude oil prices overseas. A rally in crude oil prices may increase air turbine fuel (ATF) cost for domestic airlines, thus denting the their bottomlines.
Oil futures hit a six-month high after attacks on Saudi Arabia’s crude facilities hurt over 5 per cent of world’s crude oil supply. By 9.30 am, Brent crude futures for October delivery were trading 10 per cent to $66.25 per barrel, while WTI crude futures were trading 8.93 per cent higher at $59.75.
