Aviation stocks end higher; IndiGo jumps 6%
Aviation stocks end higher; IndiGo jumps 6%
Aviation stocks were in the limelight on Wednesday, with InterGlobe Aviation climbing 6 per cent, after only a partial increase in jet fuel prices.
InterGlobe Aviation, the parent firm of IndiGo, after starting the trade on a positive note, further jumped 9.84 per cent to Rs 4,332 during the day on the BSE. The stock finally ended at Rs 4,180.90, up 6.01 per cent.
The stock of SpiceJet ended at Rs 9.93, up 1.95 per cent. During the day, it surged 4.72 per cent to Rs 10.20.
A rally in the equity market also aided buying in these stocks. Starting the new fiscal year on a high note, the 30-share BSE Sensex jumped 1,186.77 points or 1.65 per cent to settle at 73,134.32. The 50-share NSE Nifty climbed 348 points or 1.56 per cent to end at 22,679.40.
Aviation turbine fuel (ATF) prices for domestic airlines were raised by a calibrated 8.5 per cent on Wednesday, instead of more than doubling as warranted by a war-driven surge in global oil prices.
ATF or jet fuel for domestic carriers was hiked by Rs 8,289.04 per kilolitre, or 8.56 per cent, to Rs 1,04,927.18 per kl from Rs 96,638.14 per kl last month, according to state-owned oil firms.
Domestic airlines will pay half of what foreign airlines, as well as other carriers such as non-scheduled, ad hoc, and charter, would pay. For them, the prices have gone up by Rs 1,10,703.08 per kl, or 114.5 per cent, to Rs 2,07,341.22 per kl.
Fuel makes up around 40 per cent of an airline’s operating cost.
