Fly high with SpiceJet adjudged top airline stock of 2017

Spice Jet stock has been awarded as the best performing airline stock of 2017 as per Bloomberg Intelligence index of airline stock.

The company which was two-and-half years back was forced to shut down due to its inability to pay a $2.2 million in fuel bills is now declared as the world’s best performing airline stock, with around $26 million in plane orders to boot.

The company’s co-founder and chairman, Ajay Singh, has played a vital role in Spice Jet's turnaround by injecting capital, cutting loss-making routes and aggressively adding capacity in one of the world’s fastest growing markets. To top it all off, crude prices have also stayed low.

The stock is up 124% in 2017 and has gained more than 800% since the company’s near-demise in December 2014, giving Spice Jet a market value of $1.2 billion.

So long as the oil prices are under control, the outlook for aviation stocks looks bright as tickets prices will stay low and the number of air travellers will increase.

Spice Jet’s majority shareholder and chairman Singh had announced an order for the latest variant of Boeing’s workhorse 737 models worth $4.7 billion, on 19 June. A day later, he followed up with an order for as many as 50 Bombardier Q400 turboprops worth $1.7 billion.

“Spice Jet ordered for the latest variant of Boeing’s workhorse 737 model worth $4.7 billion on June 19,” Singh said adding that the company is eyeing to boost profits in the upcoming quarter, Q1FY18.