BackAirline stocks fall after jet fuel price hike
The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was hiked by Rs3,849.97 per kl to Rs50,363 per kl
Premium(Abhijit Bhatlekar/Mint )
Mumbai: Airline stocks fell on Monday after oil retailers raised the prices of jet fuel by 8.2% on Saturday, the first such increase since August.
Jet Airways India Ltd lost 4.32% to ₹ 423.25, while SpiceJet Ltd lost 4.77% to ₹ 21.95. The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was hiked by ₹ 3,849.97 per kl to ₹ 50,363 per kl. The hike follows seven consecutive monthly cuts since August, the last by 11.27% ( ₹ 5,909.9 per kl) from 1 February.
Prior to Sunday’s increase, ATF price was cut by ₹ 23,648.73 or 33% in seven reductions since August 2014. Even after the hike, jet fuel rates are the lowest since February 2011.
Jet fuel constitutes more than 40% of an airline’s operating costs and the price increase will raise the financial burden of cash-strapped carriers. No immediate comment was available from airlines on the impact of the price hike on passenger fares.
PTI contributed to the story.
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