Indian airline IndiGo jumps to 3-month high as oil prices plunge

Interglobe Aviation

Thu 04:28

** Shares of InterGlobe Aviation, operator of Indian airline IndiGo INGL.NS, rise as much as 6.8% to their highest since August 5
 ** Stock among top 5 gainers on benchmark Nifty 50 .NSEI; last up 4.8% vs 1.9% rise in Nifty
** Oil prices extend losses after falling more than 8% on hopes that result of midterm elections could hasten the end of the US-Israeli war with Iran
** Brent crude LCOc1 down 1% at $93.67 per barrel as of 9:21 a.m. IST 
** Lower oil price are a positive for airlines such as INGL; jet fuel makes up largest expense for carriers
** INGL's fuel expenses accounted for ~38% of the total during Q2, with the airline saying fare increases were inevitable as fuel prices rise
** Stock rated as "buy" by 25 analysts on average; median PT at 5,650 rupees - LSEG-compiled data
** YTD stock up ~6.6%
     
     

 (Reporting by Mridula Kumar in Bengaluru)
 ((mridula.kumar@thomsonreuters.com))