SpiceJet, Jet Airways Jump on Aviation Fuel Price Cut

Domestic carriers Jet Airways and SpiceJet outperformed the broader stock markets on Monday tracking a sharp 11.3 per cent reduction in aviation turbine fuel (ATF).

Shares in Jet Airways, India's biggest listed carrier, gained over 5 per cent to a day high of Rs 543.50, while budget carrier SpiceJet jumped over 4 per cent to a day high of Rs 23.70.

Jet fuel constitutes over 40 per cent of an airline's operating costs and the price cut will ease the financial burden of cash-strapped carriers, analysts say. Both Jet Airways and SpiceJet are struggling under huge debt.

ATF price in Delhi was cut by Rs 5,910 per kilolitre to Rs 46,513 per kl, oil companies announced on Sunday. The cut, effective Sunday, is the seventh reduction in jet fuel rates since August.

Jet Airways shares were trading up 4.36 per cent at Rs 537.20 as of 10.00 a.m., while SpiceJet was up 3.83 per cent at Rs 23.05.

(With inputs from PTI)