Spicejet, IndiGo stocks hit turbulence as ATF prices reach record high

Airline stocks came under pressure on Thursday after aviation turbine fuel (ATF) prices were hiked 16.3 percent to a record high of Rs 1.41 lakh per kilolitre. Jet fuel prices have been up 91 percent in the past six months and, according to analysts, they form over 40 percent of the operational cost for airlines.

At the time of updating this copy at 1:00 pm, Spicejet was down over six percent while InterGlobe Aviation (Indigo) had fallen over four percent. To put it in context, the Nifty and the Sensex, the benchmark indices, are trading approximately a percent in the red.

"Aviation turbine fuel prices have increased by more than 120 percent since June 2021. This massive increase is not sustainable and governments, central and state, need to take urgent action to reduce taxes on ATF that are amongst the highest in the world," said Ajay Singh, Chairman and Managing Director, SpiceJet.