SpiceJet, IndiGo fall up to 5% after a sharp rise in crude oil prices

Shares of SpiceJet declined over 5 per cent while those of InterGlobe Aviation (IndiGo NSE -2.50 %) fell almost 3 per cent following a sharp rise in global crude oil prices.

 

Crude rose to three-week highs after Iran shot down a US military drone, raising fears of about fresh conflict in the Middle East and supply constraints, Reuters reported.

 

Meanwhile, the aviation ministry has distributed Jet Airways’ foreign flying rights among Indian carriers through an allocation process. IndiGo and SpiceJet have got the maximum number of rights, with 84 weekly flights for the first and 77 for the second. All the allocations are for three months.

 

Domestic air passenger traffic saw a rebound in May as it increased by 2.96 per cent after a slump in April, according to the data released by aviation regulator DGCA last Tuesday.

 

IndiGo maintained its lead position with 49 per cent share of the domestic passenger market in May, while SpiceJet’s market share increased from 13.1 per cent in April to 14.8 per cent in May, giving it the number two spot, the data showed.

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