Jet Airways shares gain on hopes of profit boost from oil price slump

Jet Airways shares gained as much as 3.7 per cent on Tuesday on hopes that the slump in oil prices would boost the airline's profit.

Oil prices dived 4 per cent to five-year low on oversupply worries.

Analysts say that every US $1/bbl fall in crude prices can boost Jet Airways' operating profit estimate for the 2015-16 financial year by 4-5 per cent.

Shares of the airline were up 64.8 per cent since November 25, as of its previous close on Monday.

Weakness at rivals will also boost sales of Jet Airways, say traders, as SpiceJet has cut its fleet size to save costs.

(Reuters)