Airline stocks dip as OMCs plan hike in ATF prices

Stocks of airline companies – Jet Airways, Kingfisher Airlines and SpiceJet – are trading lower on the bourses on reports that the oil marketing companies are planning to hike aviation turbine fuel prices by around Rs 1,250 a kilolitre (kl) from the current Rs 56,260 a kl in Delhi.

Besides this, they also plan to hike petrol prices, with under-recovery on the fuel set to rise to Rs 3.40 a litre later this week from Rs 1 at present. The weakening rupee and firm international petroleum product prices have expanded the revenue losses of OMCs. The loss on diesel would also increase by around Rs 1.25 a litre to nearly Rs 6 in the second fortnight of September.

Jet Airways is the top loser in this pack, down nearly 2% to Rs 272 on the Bombay Stock Exchange (BSE), followed by SpiceJet (1.6%) and Kingfisher Airlines (down 1.2%).