Airline stocks rally on cut in jet fuel price
Shares of aviation companies, including Spicejet, Kingfisher and Jet Airways, soared higher today in the stock market, as the state-owned oil companies slashed jet fuel prices by over 3%.
The aviation stocks witnessed impressive buying in a strong market and rose by as much as 9%.
Shares of Spicejet settled 9.22% higher at Rs 23.10 on the BSE, while Jet Airways closed at Rs 262.40, up 5.09% from the previous close on the BSE.
Kingfisher's shares also gained 2.83% to end the trade at Rs 25.40.
The stocks rallied after the price of aviation turbine fuel (ATF) in Delhi was cut by Rs 1,974 per kilolitre (kl), or 3.02%, to Rs 62,908 per kl.
Jet fuel constitutes about 40% of an airlines' operating cost and the reduction in prices will slightly ease the burden on cash-strapped airlines.