Mumbai: Shares of Spicejet and Jet Airways rose by up to 7 percent today after jet fuel (ATF) price was cut by a steep 11.3 percent.
SpiceJet's scrip gained 6.75 percent to Rs 23.70 at the BSE.
Similarly, Jet Airways surged 5.58 percent to Rs 543.50 -- its 52-week high .
ATF price was yesterday cut by a steep 11.3 percent and now costs less than diesel.
A price cut in aviation turbine fuel (ATF), or jet fuel, by 11.27 percent or Rs 5,909.9 per kilolitre to Rs 46,513.02 per kl in Delhi was announced by oil companies yesterday.
The reduction, which followed possibly the steepest ever cut of Rs 7,520.52 per kl or 12.5 percent effected from January 1, has led to ATF becoming cheaper than even diesel.
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.
