Airline stocks end with up to 3 pc gains on ATF excise duty cut

Airline stocks bucked the weak broader market sentiment and ended with up to 3 per cent gains Thursday after the government cut excise duty on jet fuel to 11 per cent to give relief to the aviation industry.

Shares of InterGlobe Aviation gained 3.25 per cent, SpiceJet rose 3.16 per cent and Jet Airways 1.11 per cent on the BSE.

In intra-day trade, these stocks surged up to 7.44 per cent.

Aviation stocks had surged up to 8 per cent in the previous trading session also.

After petrol and diesel, the government Wednesday cut excise duty on jet fuel to 11 per cent to give relief to the aviation industry that has been hit hard over recent weeks by rising fuel prices and plummeting rupee.

Jet fuel prices this month hit their highest level since January 2014 as rising international oil prices and plummeting rupee value pushed rates.

ATF is one of the biggest costs in airline operations.

Meanwhile, the BSE Sensex slumped over 759.74 points to end at 34,001.15 Thursday.