Mumbai: Shares of Jet Airways and SpiceJet surged as much as 9 percent on Thursday after jet fuel (ATF) rates were slashed by a steep 12.5 percent.
Jet Airways' scrip surged 9.08 percent to settle at Rs 419.10 on the BSE.
Shares of SpiceJet gained 5.23 percent to close at Rs 18.10.
Jet fuel (ATF) rates were today slashed by a steep 12.5 percent, 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 percent, 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 percent of an airline's operating costs and the price cut will ease the financial burden of cash-strapped carriers.
