Aviation stocks fall after ATF price hike
Jet Airways India fell as much as 2.8%, SpiceJet 2.1% and IndiGo 7.5% in the intra-day trading
Mumbai: Shares of aviation companies fell on Wednesday after Indian Oil Corp. Ltd increased aviation turbine fuel (ATF) prices by 2.9%.
Jet Airways India Ltd fell as much as 2.8%, SpiceJet Ltd 2.1% and InterGlobe Aviation Ltd fell 7.5%. However, the stocks pared a part of the losses before closing down. Jet Airways India Ltd shares closed down 2.72%, SpiceJet Ltd fell 1%, and InterGlobe Aviation Ltd shares declined 7.20% in the closing hours.
Indian Oil on Wednesday announced a 2.9% hike in jet fuel prices in Delhi to Rs54,079.63 per kilo litre. The company said the hike would be effective from Wednesday onwards.
Fall in the InterGlobe Aviation stock was also due to lower-than-expected earnings in the December quarter. Its profit dropped 25% because of increase in fuel costs and lower ticket prices. Net profit fell to Rs487.25 crore in the three months ended 31 December from Rs657.29 crore a year earlier, the company said. Revenue rose 16.8% to Rs5,158.42 crore from Rs4,481.20 crore in the year-ago period, as the company added planes and operated more flights.
Jet Airways will announce its earnings on 3 February. Two Bloomberg analysts estimated the company may post net profit of Rs107.70 crore and net sales at Rs1,624.10 crore.
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