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Aviation stocks fly high on ATF price cut; gain up to 9.5%

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Mumbai: Aviation stocks were in limelight today, surging by up to 9.5 per cent, after ATF or jet fuel price was slashed by 10 per cent. Shares of SpiceJet zoomed 9.44 per cent to end at Rs 82.35 on BSE. Similarly, InterGlobe Aviation surged 8.73 per cent to Rs 1,341.75 and Jet Airways jumped 8.28 per cent to Rs 760.60 at close of trade.

All the three listed airlines touched their respective 52-week highs during the day. Aviation Turbine Fuel (ATF) price in Delhi was reduced by Rs 4,428 per kilolitre (kl) or 9.99 per cent to Rs 39,892.32 per kl, oil companies announced today.

Jet fuel constitutes over 40 per cent of an airline’s operating costs and the price cut will reduce the financial burden on cash-strapped carriers. Meanwhile, in the broader market, the benchmark BSE Sensex ended the first trading session of 2016 on a muted note, rising by 43.36 points to settle at 26,160.90.