Turkish Airlines shares rose to a record as tumbling oil prices cut fuel costs for the nation’s flag carrier.

The stock advanced as much as 4 percent to 9.58 liras, the highest since at least 1995, according to data compiled by Bloomberg. They were 2.2 percent higher at 9.41 liras at 12:31 p.m. in Istanbul, extending last month’s 26 percent gain. Local rival Pegasus Hava Tasimaciligi AS rose 2 percent after last week reaching the highest since Jan. 23.

Oil collapsed almost 13 percent last week, the biggest five-day decline since May 2011, after OPEC decided to maintain output even as the U.S. pumps crude at the fastest rate in three decades. Turkish two-year note yields dropped 1 percentage point last month and 1.42 percentage points in October on speculation falling oil prices will help narrow the nation’s current-account deficit and slow inflation.

“The reason is obvious: the falling petroleum price,” Tunc Obuter, head of trading at Garanti Investment in Istanbul, said in e-mailed comments. “A significant part of operational costs is fuel. Therefore, almost all sectors are benefiting from the fall in oil, but airliners even more.”

The Bloomberg World Airlines Index added 1.6 percent today after jumping 5.2 percent on Nov. 18, the most since October 2008.

To contact the reporter on this story: Selcuk Gokoluk in Istanbul at sgokoluk@bloomberg.net. To contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net.

Photo Credit: A Turkish Air plane in Dusseldorf, Germany. Eric Salard / Flickr