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Airline stocks rally on cut in jet fuel price

Press Trust of India  |  Mumbai 

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.

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First Published: Wed, February 01 2012. 16:55 IST