The shares of aviation companies like Jet Airways, SpiceJet and InterGlobe Aviation rose by 3% after oil companies cut down the aviation turbine fuel (ATF) price by 1.31% with effect from today.
The stocks of SpiceJet gained around 3%, Jet Airways went up by 2.7% and InterGlobe Aviation hit an intraday high of 2.4%. The price of jet fuel in Delhi was cut by Rs 515.85 to Rs 38785.46 per kilo litre. The price of jet fuel in Chennai stood at Rs 41459.29, in Kolkata it stood at Rs 43893.53 and in Mumbai at Rs 38425.94. Jet fuel accounts for around 40% of the cost that low budget carriers incur. Thus it is the biggest cost for low budget carriers.