Mumbai, Jan 1: Shares of Jet Airways and SpiceJet surged as much as 9 per cent today after jet fuel (ATF) rates were slashed by a steep 12.5 per cent.
Jet Airways' scrip surged 9.08 per cent to settle at Rs 419.10 on the BSE. Shares of SpiceJet gained 5.23 per cent to close at Rs 18.10.
Jet fuel (ATF) rates were today slashed by a steep 12.5 per cent, the sixth straight reduction in prices since August, as international oil prices slumped to five-year low levels.
The price of aviation turbine fuel (ATF), or jet fuel, at Delhi was cut by Rs 7,520.52 per kilolitre, or 12.5 per cent, to Rs 52,422.92 per kl, oil companies announced today.
This is possibly the steepest cut in rates since ATF pricing was deregulated or freed in April 2002. The cut, effective today, is the sixth reduction in jet fuel rates since August.
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.