Airlines stock ascends
Thursday, September 3, 2009 10:38 amBy ShareGyan.com NewsDesk
Jet Airways, Kingfisher Airlines and SpiceJet soared. Reportedly, after seeing a two-year low, air prices are expected to increase by 10% in September. ATF costs in the Indian market have increased by 50% from the lows of March this year.
Reportedly, global crude rate is floating around $70 per barrel and there is barely any likelihood of it declining instantly, which is driving to prices increase in the present month.
Airlines will have to hike prices to reduce the gap and to attain a break-even. The stable increase in ATF costs has made it hard for the airline industry to remain floating without increase in prices.
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