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Asian airline stocks surge as oil price fall, India's carriers lead the way

Analysis

Asia Pacific airline stocks surged on Friday following the sell off in oil prices on Thursday.

Summary
  • Asia Pacific airline stocks surged following the sell-off in oil prices.
  • Oil prices in New York fell below USD100 per barrel for the first time since mid-Mar-2011.
  • Jet Airways experienced the highest surge in stock prices, with an increase of 11.9%.
  • Kingfisher and SpiceJet also saw significant increases in stock prices, both rising by more than 10%.
  • The gains in airline stocks were a result of the continued decline in oil prices.
  • This surge in stock prices indicates a positive market response to the decrease in oil prices for the aviation industry.

Oil prices in New York fell below USD100 per barrel for the first time since mid-Mar-2011 on Thursday, losing 8%. Losses continued on Friday.

Gains were led by Jet Airways, which surged 11.9%, while Kingfisher and SpiceJet also rose by more than 10%. See related report: Air India writes its own melodrama

Selected Asia Pacific airlines daily share price movements (% change): 06-May-2011

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