Shares of SpiceJet and Jet Airways settled with gains after jet fuel (ATF) price was cut by a steep 11.3 per cent.
Shares of SpiceJet and Jet Airways settled with gains today after jet fuel (ATF) price was cut by a steep 11.3 per cent.
SpiceJet’s scrip ended with a gain of 3.60 per cent at Rs 23 on the BSE. During the day, it soared 6.75 per cent to Rs 23.70.
Jet Airways stock rose by 2.36 per cent to close at Rs 526.90. In the intra-day trade, it had gained 5.58 per cent to Rs 543.50 — its 52-week high.
ATF price was yesterday cut by a steep 11.3 per cent and now costs less than diesel.
A price cut in aviation turbine fuel (ATF), or jet fuel, by 11.27 per cent or Rs 5,909.9 per kilolitre to Rs 46,513.02 per kl in Delhi was announced by oil companies yesterday.
The reduction, which followed possibly the steepest ever cut of Rs 7,520.52 per kl or 12.5 per cent effected from January 1, has led to ATF becoming cheaper than even diesel.
Jet fuel constitutes over 40 per cent of an airline’s operating costs and the price cut will ease the financial burden of cash-strapped carriers.