Spice jet has becomes world’s top performing aviation stock in last one year by increasing four fold from its current value. Aviation industry has benfitted to a greater extent in recent times due to lower crude oil prices and a big boost in passenger traffic.
The company outperformed its international customers like El Al Israel Airlines, Hawaiian Holdings, China Southern Airlines and Qantas Airways. Among other aviation players , the freshly listed Indigo also realized a 42% increase in its stock from the day of its filing on the stock exchange. All the aviation companies are positive that they will have a happy end to the year with increase in passenger traffic and advance booking numbers which are on a high. The management is on high because of the surge but various research companies advice not to go on a buying spree as the stock has risen sharply in recent times and would correct soon.
In an interview given to ET G Chokkalingam, founder and managing director of Equinomics Research & Advisory said “I would advise existing investors to book profits in phases in SpiceJet stock, while newcomers should avoid this company because the stock has already run up sharply. Some of the global airline stocks have seen re-rating because of lower jet fuel prices, while domestic airlines are benefiting from the fact that India is becoming the fastest-growing airline market.”
Lets hope that this blue run continues for a longer period and help investors earn some good money in the near future.