Aviation shares dip on hike in ATF prices

Oil companies have hiked jet fuel price by 8.2% to Rs 50,363/kilolitre at Delhi

Shares of airline companies were trading 4-5% lower in early trades after oil marketing companies raised price of aviation turbine fuel by 8.2%, the first such hike since last July.

In Delhi, the price of aviation turbine fuel was raised to Rs 50,363 per kilolitre from Rs 46,513 per kilolitre effective from Saturday midnight.

Aviation turbine fuel accounts for about 40% of the airline's operating expenses.

Jet Airways was down nearly 4% at Rs 425. At 9:45AM, over 330,000 shares were traded on both the stock exchanges.

SpiceJet was down 4% at Rs 22. At 9:45AM over 1.6 million shares were traded on the Bombay Stock Exchange.