Why Jet Airways Shares Are Up 20% Today

Shares of Jet Airways surged nearly 20 per cent on Friday after ICRA upgraded rating of Rs 3,210 crore loan facility given to the company based on improvement in cash flows.

The ratings agency has upgraded the long-term rating assigned to the Rs 3,210 crore, fund-based bank facilities of Jet Airways to [ICRA]BB from [ICRA]C, a statement had said yesterday.

"The rating upgrade takes into account the improvement in the liquidity and credit profile of the company, arising from improved operating performance as well as support from its strategic partner-Etihad Airways PJSC," it said.

Brent crude oil prices which headed towards $70 per barrel also boosted sentiment in the airline stocks. Traders expect falling crude prices would lead to sharp cuts in prices of aviation turbine fuel, which accounts for nearly 40 per cent of their operating cost. Shares in SpiceJet also traded with over 10 per cent gains.

Shares in Jet Airways ended 20 per cent higher at Rs 322.65 apiece on NSE, outperforming the Nifty which ended1.11 per cent higher.

(With inputs from PTI)