IndiGo To SpiceJet: Aviation Stocks Soar Following Fuel Price Cut
Shares of IndiGo operator InterGlobe Aviation Ltd. rose by 1.62% to Rs 4,864.90 apiece at market open.
Aviation stocks, from InterGlobe Aviation Ltd. to SpiceJet Ltd., rose on Tuesday after oil marketing companies announced a reduction in aviation turbine fuel prices, effective Oct. 1, 2024.
Shares of IndiGo operator InterGlobe Aviation Ltd. rose by 1.62% to Rs 4,864.90 apiece at market open, recovering from a previous close of Rs 4,787.45 per share.
Budget carrier SpiceJet Ltd.'s stock jumped 5.49% to Rs 67.20 per share, up from Monday's close of Rs 63.70 apiece. Jet Airways India Ltd. also joined the upward trend, with shares climbing 1.30% to Rs 39.02 apiece after closing 0.41% lower the prior day.
IndiGo, SpiceJet Share Prices Jump
The price cut, amounting to Rs 5,883 per kiloliter, provides much-needed relief to domestic airlines grappling with rising operational costs.
The price adjustments now set ATF prices for domestic airlines at Rs 87,597.22 per kiloliter in Delhi and Rs 81,866.13 per kiloliter in Mumbai. For international operations, the revised prices are $795.27 per kiloliter in Delhi and $794.57 in Mumbai.
This move by OMCs will bolster the aviation sector, which has been under increasing pressure due to fluctuating fuel costs.
The reduction is expected to positively impact airline profitability, potentially allowing carriers to lower ticket prices or enhance services for passengers. This development is seen as a crucial step in stabilising the aviation industry as it continues to recover from the effects of the pandemic.
