SpiceJet zooms 7% on DGFT nod for jet fuel import

The move will lower the budget carrier's costs

Shares of SpiceJet today rose over 7% after the company received government approval for directly importing jet fuel, a move which is likely to lower the budget carrier's costs.

At the end of the session, SpiceJet closed at Rs 34.95, up 5.75% from its previous close on the BSE. During the day, the stock surged 7.11% to Rs 35.40.

On the volume front, 1.64 crore shares of the company changed hands on the BSE as against its two-week daily average of 1.07 crore shares, signifying strong investor interest in the counter.

SpiceJet, controlled by Kalanithi Maran, is the first airline in the country to receive the Directorate General of Foreign Trade's nod for direct import of aviation turbine fuel (ATF), the company said in a statement.

The airline is presently negotiating with leading oil marketing companies and is hopeful to start importing fuel in due course, it said.

"The airline sector will benefit from direct imports of fuel due to high ATF prices in India and we are hopeful to commence the import of fuel in due course," SpiceJet's chief executive Neil Mills said.

SpiceJet shares outperformed the volatile stock market, where the BSE benchmark Sensex ended at 17,392.39, up 34.45 points.