Airline Stocks Slide on Rising Crude, ATF Prices

IndiGo and SpiceJet shares extended losses on Wednesday as rising crude oil prices and higher Aviation Turbine Fuel (ATF) prices raised concerns over increased operating costs. IndiGo fell 2.17%, while SpiceJet declined 2.70%. Brent crude rose around 1% to $95.60 a barrel, amid escalating US-Iran tensions and concerns over possible disruptions through the Strait of Hormuz. Domestic ATF prices were also increased by 5.46%, marking the second consecutive monthly hike. Jet fuel accounts for nearly 40% of airline operating costs, making sustained crude and ATF price increases a key margin concern. Airlines may face further pressure if higher fuel costs cannot be fully passed on to passengers through higher fares.