IndiGo, SpiceJet Shares Fall as Crude Nears $96

and SpiceJet shares extended their losing streak on Wednesday amid rising crude oil prices and another hike in Aviation Turbine Fuel (ATF) prices. InterGlobe Aviation, the parent company of IndiGo, was trading at Rs 4,942.50 on the NSE at 9:31 am, down 2.17%, while SpiceJet shares were trading at Rs 9.72 on the BSE, down 2.70%. On Wednesday, Brent crude jumped 1% to $95.60 a barrel, heading for its fourth gain in five sessions, as escalating fighting between the US and Iran heightened concerns over disruptions to energy flows through the Strait of Hormuz. Domestic ATF prices were increased 5.46% on Tuesday, marking the second consecutive monthly hike. ATF prices rose by Rs 6.28 per litre to Rs 121.28 per litre from Rs 115 per litre. Airline stocks had already ended lower on Tuesday following the ATF price revision, with InterGlobe Aviation falling 3.48% to Rs 5,052 and SpiceJet declining 3.20% to Rs 9.99. ATF prices had risen 7.5% in August following three consecutive monthly reductions. Fuel accounts for nearly 40% of an airline's operating costs, making movements in ATF prices a key factor for the sector. Any sustained rise in jet fuel prices can put pressure on airline margins, particularly when carriers are unable to fully pass on higher fuel costs to passengers.