SpiceJet, IndiGo share price hike in jet’s biggest-ever fuel boost
Shares of airlines SpiceJet and InterGlobe Aviation sold off sharply on Thursday after the price of aviation turbine fuel (ATF) or jet fuel lifted to record highs.
Shares of SpiceJet jumped 7.05% to Rs 40.90 per unit on BSE. On the day, it fell 8.29% to a one-year low of Rs 40.35.
InterGlobe Aviation, IndiGo’s parent company, dropped 5.22% to Rs 1,644.65 per person. On the day, the stock fell 5.83% to Rs 1,634.
On Thursday, jet fuel prices jumped 16%, their highest ever, lifting catapult prices to all-time highs with international oil prices surging.
SpiceJet President and CEO Ajay Singh said on Thursday that Ajay Singh, SpiceJet President and CEO, said a sharp rise in aviation turbine fuel prices and a devaluation of the rupee have caused airlines to in the country had no choice but to increase airfares immediately.
Singh said in a statement that a minimum of 10-15% increase in airfares is required to ensure operating costs are better maintained.
The increase in jet fuel prices will increase operating costs for airlines. ATF accounts for up to 40% of an airline’s operating costs.
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