SpiceJet introduces fresh routes at prices as low as Rs 2,999; stock jumps 6%

SpiceJet share price advanced nearly 6 per cent on Monday after the company offered a fresh route to enhance its regional connectivity, while a recent fall in Brent crude oil price added to positive sentiment around airlines stocks. SpiceJet shares rallied as much as 5.79 per cent to Rs 117.80 on the BSE. The stocks settled at Rs 114.10, up 2.5 per cent.

SpiceJet on its official website said it will now offer daily direct flights from Tuticorin to Bengaluru, starting July 1, 2018. Passengers can book their flight tickets for Rs 2,999 in the spicesaver category and for Rs 3,752 in the spicemax category.

SpiceJet had recently announced to launch flight services for Delhi-Kanpur-Delhi route, fares for which start from an all-inclusive one-way price of Rs 2,313. Kanpur is SpiceJet's seventh destination under regional connectivity scheme (RCS) UDAN (Ude Desh ka Aam Naagrik) scheme. The airline will start operations from July 3.

Recently, Jet Airways and IndiGo also introduced new routes to boost regional connectivity.

Last week, IndiGo introduced Tuticorin as its 53rd destination. The carrier with its 10th ATR aircraft will be flying three daily non-stop flights between Chennai and Tuticorin at a starting all-inclusive price of Rs 2,999 from July 26, 2018.

Under the UDAN scheme, Jet Airways started flights starting from Rs 1,177, connecting Allahabad 6 day a week, complementing the existing connectivity to/from the city.

The new flights will offer two-way connections to Mumbai from Allahabad via Nagpur/Indore/Lucknow. Similarly, the flights offer two-way connections to Bengaluru from Allahabad via Indore/Patna.

Meanwhile, oil prices steadied on Monday ahead of an OPEC meeting that is widely expected to increase global crude supply and as investors assessed the impact of a trade dispute between the United States and China.
 
US light crude oil hit a two-month low of $63.59 a barrel before recovering to trade at $64.76, down 30 cents. North Sea Brent, meanwhile, was up 60 cents at $74.04 a barrel.

Brent hit a 3-1/2-year high above $80 a barrel in May but has since fallen on reports that top suppliers Saudi Arabia and Russia will increase production.

Air turbine fuel (ATF) constitutes about 40 per cent of an airline's operating cost.