Aviation stocks including Interglobe Aviation (IndiGo), Spicejet, Jet Airways (India), among others will be in focus on Monday (January 1) after jet fuel or aviation turbine fuel (ATF) price was slashed to ₹1.01 lakh per kilolitre (kl) from ₹1.06 lakh in the national capital.
The second quarter of last year saw a steady escalation in the prices of ATF, as it rose for three consecutive months leading up to September 1, 2023, when it reached ₹1.12 lakh. That period witnessed a substantial increase of 26%, demonstrating a notable impact on the aviation industry.
The rate reduction will benefit airlines for whom fuel makes for almost 40% of the operating cost. Based on the average rate of international benchmark and foreign exchange rates, the ATF price is revised on the first of every month.
With the reduction in jet fuel, ticket prices might see some cooling off.
First Published: Jan 1, 2024 8:53 AM IST
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