SpiceJet, Jet Airways, IndiGo slip up to 5% as crude prices soar

NEW DELHI: Shares of aviation companies such as SpiceJet, Jet Airways and InterGlobe Aviation declined as much as 5 per cent on Friday, as crude oil prices jumped above $35 a barrel mark. The sudden spike in oil prices raised fears of a rise in air turbine fuel prices, adding to the costs of these airliners.

Crude oil prices rallied as much as 6 per cent in overnight trade after reports said Russia and Opec members are expected to initiate talks on cutting the global supply glut after prices plunged to over 12-year lows earlier this month.

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Russian oil minister was quoted by media as saying that talks were on with Saudi Arabia to consider up to 5 per cent cut in output. However, five Opec delegates rejected any possibility of talks with Russia.

Shares of SpiceJet hit a low of Rs 86.20 while that of Jet Airways slipped to Rs 595 within the first hour of trade. InterGlobe Aviation shares tumbled to a low of Rs 882.50 on the BSE.