Jet fuel price hike, IndiGo's profit plunge hit airline stocks

Mumbai: India's airline stocks were negatively impacted Wednesday by a midnight hike in fuel prices coupled with a decline in market leader IndiGo's quarterly net profit announced yesterday.

IndiGo itself plunged as much as 10% during the day and closed 7.20% down at Rs 836 on the sensex. Jet Airways closed 2.72% down at Rs 392 while SpiceJet closed 1% down at Rs 64.20.

IndiGo, the country's biggest carrier by market share, announced a 25% decline in its net profit for the October-December quarter, hurt by lower yields and rising fuel prices.

Prices of aviation turbine fuel--a decline in which had improved the carriers' fortunes--have begun to inch up. Cost of the fuel at the Delhi airport rose 8% in November compared to October, then declined a tad in December before rising again in January.

Last midnight, jet fuel prices at the Delhi airport were increased by 3%, beyond the levels of 2015, when prices started falling.