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Shares to aviation companies – Jet Airways (India) and SpiceJet have rallied up to 7% in early morning deals on BSE after state oil marketing companies have cut jet fuel (ATF) prices by a steep 7.3% from Saturday.
This is the fourth straight reduction in prices since August on back of falling international oil rates. The move would help these companies improve profitability by reducing operating costs.
Jet fuel constitutes over 40% of an airline's operating cost and the reduction in prices will ease the burden of the cash-strapped airlines.
Among the individual stocks SpiceJet rallied nearly 7% to Rs 14.85, while Jet Airways (India) surged 6% to Rs 247 on BSE.
This is the fourth straight reduction in prices since August on back of falling international oil rates. The move would help these companies improve profitability by reducing operating costs.
Jet fuel constitutes over 40% of an airline's operating cost and the reduction in prices will ease the burden of the cash-strapped airlines.
Among the individual stocks SpiceJet rallied nearly 7% to Rs 14.85, while Jet Airways (India) surged 6% to Rs 247 on BSE.
