The Increase In Gross Rupee Fall Take Their Toll On Airline Stocks

SpiceJet (down 1.88%), Jet Airways (down 0.67%) and Kingfisher Airlines (down 0.18%), declined slightly.

The BSE Sensex rose 43.10 points, or 0.29% to 17,114.10.

SpiceJet has underperformed the market over the last month until September 7, 2011, declining 10.91% compared to Sensex’s fall of 1.39%. The stock had underperformed the market also in the fourth quarter, sliding 25.73% compared to 7.73% in the Sensex down NRI online trading account .

Jet Airways has underperformed the market over the past one month, until September 7, 2011, sliding 30.08% as against a decline of 1.39% of Sensex. The Scriptures also underperformed the market in the past quarter, falling 33.46% as against 7.73% in Sensex fall.

Kingfisher Airlines has underperformed the market over the past one month, until September 7, 2011, sliding 13.04% as against a decline of 1.39% of Sensex. The Scriptures also underperformed the market in the past quarter, falling 34.96% as against 7.73% in Sensex fall.

Aviation turbine fuel accounts for jet fuel, or more than 50% of airline operating costs. Prices for jet fuel are directly linked to oil prices.

Oil traded near its highest close in over a month in New York on speculation the construction of a storm in the Gulf of Mexico represents a threat to U.S. supply, which fell this past week by a cyclone above. In terms of U.S. crude for October delivery rose 32 cents in 2011 and 0.36 to 89.66% per barrel PAN Card for NRI .

State oil marketing companies – Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation to control the prices of kerosene and 16 1 of each month based on the average price of international crude oil last week.

For the second time in a month, cut the oil companies belonging to the State, September 1, 2011, jet fuel prices equal to the relaxation rates in international markets. Turbine aviation fuel (ATF) price in the Delhi airport was cut T3 RS 429 liters per kilogram (KL), or 0.75% to SR 56,260 per KL. Previously, oil companies had from August 16, 2011 Rates cut by jet fuel of Rs 1156 per KL or around 2%. ATF prices vary from airport to airport, depending on the local sales tax or VAT.

A weak rupee has also weighed on airline stocks. The rupee today, 8th September 2011, fell to near one-year low against the dollar dragged the dollar demand from national oil companies and the weakness of Asian currencies, with shares also weighed agitated. The partially convertible rupee hit an early low prices 46.2650 – a level not seen since September 16, 2010 NRI Demat account .

Rupee weak negative impact on the aviation industry, because almost a third of airlines’ dollar-denominated transactions. Among the charges in dollars, the lease of aircraft lease, maintenance, spare parts and wages paid to foreign crews.


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